Franchise Canada January/February 2024 by Franchise Canada

CATEGORIES TO WATCH IN 2024

TECH, AUTOMATION, AND AI TRENDS

COFFEE AND BAKED GOOD FRANCHISES ACROSS CANADA JANUARY | FEBRUARY 2024

A Canadian Franchise Association Publication / FranchiseCanada.Online

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CONTENTS FRANCHISE

CANADA

JANUARY/FEBRUARY 2024

2024 20 24 FRANCHISING

Looking for a franchise? Discover

the best franchise business opportunities available now

Start a business for yourself with the support of a credible franchise system! With hundreds of franchise opportunities, LookforaFranchise.ca is the most comprehensive online directory of legitimate franchises available in Canada. We make searching for a franchise easy— you can find franchises by company name, location, investment, or industry. Begin your search now and realize the dream of running your own business.

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TRENDS

COVER STORY

The Force of Franchising The trends and categories driving the franchise industry’s resilience in 2024 and beyond

15 2024 Trends in the Canadian Franchise Industry

18 The Shifting Spend Priorities of Canadian Consumers 2023

21 Canadian Economic Outlook

24 QSR Franchise

Trends: Understanding How Canadian Consumers Spend on Food

26 Tech Innovations

Reshaping Franchising into 2024 and Beyond

30 Snapshot of a

Prospective Franchisee

4 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

Living the Good Life From tanning salons to ultraprivate gyms, three franchises for well-rounded lifestyles Coffee and Baked Goods Across Canada Between cups of joe, pastries, and fresh café fare, these franchises keep Canada running

10 Things to Look for in a Franchisor The franchisor-franchisee relationship is crucial, and these key considerations can help foster franchise success

Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

DEPARTMENTS

HOME-GROWN & LOCALLY-OWNED 100% Canadian Franchise Systems

NEXT GENERATION IN FRANCHISING All in the Family Oxygen Yoga & Fitness franchisee Samantha Collins shares her 13-year journey with a brand that just feels like home

LEADERSHIP PROFILE From the Rugby Pitch to the Boardroom MOLLY MAID president and CEO Aaron Abrams goes from tackling the competition to tackling a cleaning empire

A DAY IN THE LIFE Tressed for Success Successful Sola Salons franchisee Becky McDougall walks through a typical day at her Oshawa location

THE FIRST YEAR Diving into a Pool Care Franchise Two colleagues-turnedfranchisees share the details of their first year of Puddle Pool franchise ownership

COMING TO CANADA From the Land Down Under to the Great White North How Just Cuts is bridging the business gap between Australia and Canada

SHOW ME THE MONEY 4 Franchises for Under $50K

GIVING BACK Painting the Town Pink Franchised painting business CertaPro Painters shares how its system-wide campaign brings funding and awareness to breast cancer research—and a host of other causes near and dear to franchisees’ hearts

FRANCHISE TUTORIAL Tutorials 7 & 8 This issue: • Intro to Initial Training • Intro to Ongoing Training

COLUMNS

9 CFA CODE OF ETHICS 10 INDUSTRY NEWS 66 ASK THE EXPERTS 72 MARKETPLACE 73 ADVERTISERS’ INDEX 74 FRANCHISE ROUNDUP

CATCH UP ON SEASON 7 NOW! SEASON 8 COMING IN 2024!

LISTEN & LEARN

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Visit www.LookforaFranchise.ca to find more information about the franchises featured in this issue.

Franchise Canada

January | February 2024

PUBLISHER’S MESSAGE

STRONG FRANCHISE FOUNDATIONS: OVERCOMING CHALLENGES, EMBRACING CHANGE

usinesses have been through a lot in the last few years, from the major disruption of the pandemic to economic uncertainty, and more. Those with strong foundations that can be resilient in changing times are poised for long-term success. For many Canadian business owners, those successful businesses are franchises. So, what does the future of franchising have in store? Turn to page 14 to read our annual cover story package on franchise trends. Here, you can explore a macroeconomic outlook from the Royal Bank of Canada (RBC), along with in-depth data for different regions of Canada to learn more about what a slowdown means for the Canadian franchise industry and what we can expect in the coming year (page 21). On page 15, we feature a special Q&A with franchise consulting experts Gary Prenevost and Grant Bullington who provide insights on trends and on key categories to watch and offer advice backed by years of experience. Plus, data on the typical prospective franchisees and more necessary information as you start or expand your entrepreneurial journey in 2024. Then, on page 24 we go in-depth into some consumer dining trends as we examine different segments of the population and their behaviour regarding quick service restaurant (QSR) spending. Franchising continues to be a resilient business model that can adapt to changing consumer behaviour and economic realities to meet the needs of customers and support franchisees. You’ll see examples of this resilience on page 26 in our tech trends story. It highlights three brands that are using new technology—whether it be video, artificial intelligence (AI), or proprietary platforms—to improve their operations and offerings. Along with exploring franchising trends, this issue features some inspiring franchisee success stories. We take you through an in-depth look at a day in the life of franchisee Becky McDougall, who owns a Sola Salons franchise along with her husband and two other co-owners (page 54). Dynamic franchisee duo Zach Wilson and Jason Curry share what they learned in their first year running a Puddle Pools franchise (page 57). On page 48, we share the inspiring story of 29-year-old Oxygen Yoga & Fitness franchisee Samantha Collins, who went from working as a fitness instructor at age 16 to co-owner of two locations.

We also invite you to learn about Just Cuts, an Australian hair cutting franchise system making the jump to Canada (page 60). Plus, MOLLY MAID CEO Aaron Abrams shares the story of how he went from playing rugby to his role as a C-suite executive in the cleaning business (page 51). This issue also contains helpful resources for those considering franchising, or just starting out on a franchising journey. Legal expert Nikolas Sopow provides a breakdown of the questions you should ask about franchisee training (page 67), and franchising experts Eric Martin and Sharon Cupach answer the question, ‘What factors should I consider when exploring franchise ownership?’ (page 66). And, as we move through the cold months, warm up with an overview of some of the most exciting coffee and dessert franchise opportunities across Canada (page 35). If you’re considering going into business as a franchisee, know that you’re going into business for yourself, but not by yourself, and don’t forget that FranchiseCanada.Online is here to help. The website is your online resource for franchise information, inspiring success stories, educational videos, podcasts, and more. Sign up for Franchise Canada E-News to get franchising updates delivered right to your inbox, and follow us on Facebook, Twitter, Instagram, LinkedIn, and TikTok. Take some time to browse these stories and opportunities and soak up the vital information in this issue. Joining a franchise lets you tap into shared resources and ongoing support so you can succeed—no matter the economic climate. 2024 could be the year you make your dream of owning your own business a reality, so get excited about the year ahead!

Sherry McNeil President & CEO, Canadian Franchise Association

6 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

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CFA BOARD OF DIRECTORS BOARD CHAIR David Druker*, The UPS Store PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR Ryan Picklyk, A&W Food Services of Canada Inc. 2ND VICE CHAIR Todd Wylie, Master Mechanic

PUBLISHER

PAST CHAIR Gerry Docherty*, Good Earth Coffeehouse

Canadian Franchise Association (CFA)

SECRETARY & GENERAL COUNSEL

SENIOR MANAGER, CONTENT & MARKETING

Darrell Jarvis*, Fasken

Lauren Huneault

TREASURER Lyn Little, BDO Canada LLP

EDITOR Karen Stevens

CHAIR, FRANCHISE SUPPORT SERVICES

CONTENT PRODUCER Daniel McIntosh

Kirk Allen, Reshift Media

GRAPHIC DESIGNER Andrea Lee

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

ADVERTISING SALES Dion Persaud,

Andraya Frith, Osler, Hoskin & Harcourt LLP DIRECTORS

Chuck Farrell, Pizza Pizza John Gilson, COBS Bread Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Joel Levesque, McDonald’s Restaurants of Canada Ken Otto, Redberry Restaurants Gary Prenevost, FranNet John Prittie, TWO MEN AND A TRUCK Stephen Schober, Metal Supermarkets Family of Companies Thomas Wong, Chatime

Stephanie Philbin

AD COORDINATOR Andrea Lee CONTRIBUTING WRITERS

Rachel Battaglia, Georgie Binks, Suzanne Bowness, David Chilton Saggers, Carrie Freestone, Eva Hongya-He, Roma Ihnatowycz, Nathan Janzen, Joelle Kidd, Anna Racovali, Stefanie Ucci, Jordan Whitehouse, Kym Wolfe, Craig Wright, Abbey Xu FOR ADVERTISING INFORMATION:

Stephanie Philbin sphilbin@cfa.ca

*Executive Committee member

The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year. Find out more about these companies at www.cfa.ca/sponsorship

Dion Persaud dpersaud@cfa.ca TO SUBSCRIBE TO Franchise Canada

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We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or https://cfa.ca/ franchisecanada/franchise-canadamagazine/.

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LAW FIRMS:

SHOWCASED FRANCHISES

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Legal Disclaimer The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

CODE OF ETHICS

he Canadian Franchise Association (CFA) is dedicated to encouraging and promoting excellence in franchising in Canada. Each member of the Association agrees to abide by the CFA Code of Ethics and to further the Association’s goals of encouraging and promoting ethical franchising in Canada. Each member of the Association agrees to comply with the spirit of this Code of Ethics in its general course of conduct and in carrying out its general policies, standards and practices. The following are considered by the Association to be important elements of ethical franchising practices: 1. Franchise system and franchise support services members should fully comply with Federal and Provincial laws, and with the policies of the Canadian Franchise Association. 2. A franchisor should provide prospective franchisees with full and accurate written disclosure of all material facts and information pertaining to the matters required to be disclosed in advance to prospective franchisees about the franchise system a reasonable time [at least fourteen (14) days] prior to the franchisee executing any binding agreement relating to the award of the franchise. 3. A ll matters material to the franchise relationship should be contained in one or more written agreements, which should clearly set forth the terms of the relationship and the respective rights and obligations of the parties. 4. A franchisor should select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfil the needs and requirements of the franchise. Franchise systems and franchise support services members of the Association should not discriminate based on race, colour, religion, national origin, disability, age, gender or any other factors prohibited by law. 5. A franchisor should provide reasonable guidance, training, support and supervision over the business activities of franchisees for the purposes of safeguarding the public interest and the ethical image of franchising, and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it. 6. Fairness should characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor should give notice to its franchisees of any contractual

default and grant the franchisee reasonable opportunity to remedy the default. 7. A franchisor and its franchisees should make reasonable efforts to resolve complaints, grievances and disputes with each other through fair and reasonable direct communication, and where reasonably appropriate under the circumstances, mediation or other alternative dispute resolution mechanisms. 8. A franchisor and a franchise support services member should encourage prospective franchisees to seek legal, financial and business advice prior to signing the franchise agreement. 9. A franchisor should encourage prospective franchisees to contact existing franchisees to gain a better understanding of the requirements and benefits of the franchise. 10. A franchisor should encourage open dialogue with franchisees through franchise advisory councils and other communication mechanisms. A franchisor should not prohibit a franchisee from forming, joining or participating in any franchisee association, or penalize a franchisee who does so. 11. A franchise support services member in providing products or services to a franchisor or franchisee should encourage the franchises to comply with the spirit of this Code of Ethics. A franchise support services member should not offer or provide products or services if legislative or professional qualification is required to do so unless the franchise support services member has such qualification.

LOOK FOR EXCELLENCE As you investigate the many franchise opportunities available to you, you will see a special logo featured in franchise literature, on franchising websites and in franchise tradeshow booths. This logo identifies franchise systems and franchise support services/suppliers as members of the Canadian Franchise Association (CFA). You should be on the lookout for this symbol when researching franchise systems or assembling a team of franchise support professionals to assist in your search. CFA encourages and promotes excellence in franchising in Canada and members of the Association voluntarily agree to follow the CFA’s Code of Ethics in pursuit of these goals. Start your search for your franchise dream with a CFA member. Visit LookforaFranchise.ca today.

Franchise Canada January | February 2024

INDUSTRY NEWS

Your source for what’s happening in Canadian franchising

Globally acclaimed fitness franchise brand Studio Pilates International (SPI) announced its expansion into Canada, with three studios on track to be open by spring. SPI is poised to bring its unique blend of dynamic reformer Pilates workouts and expert instruction to fitness enthusiasts in Langley, B.C., and Richmond Hill and Vaughan, Ontario. This expansion will mark the brand’s presence in six countries globally and its commitment to delivering high-quality reformer Pilates classes that combine traditional techniques with modern exercise science. SPI has a focus on client inclusivity and caters to individuals of all fitness levels, from beginners right through to experienced practitioners. These reserved locations in Langley, Richmond Hill, and Vaughan mark an exciting step for the brand’s global expansion and join the current network in Australia, New Zealand, the U.K., the U.S., and China. Each of these state-of-the-art studios will offer a welcoming and inclusive environment, featuring cutting-edge equipment and world-class instructors who are dedicated to empowering clients on their fitness journey.

“Studio Pilates is a premium product and unlike anything else on the market, which is why I believe this is a huge opportunity to spearhead the Canadian market and really make an impact. Studio Pilates combines state-of-the-art audiovisual technology, luxurious studio finishes, effective and transformative workouts, and worldclass instructors, to provide an exceptional client experience that keeps clients happy, classes full, and studios profitable,” says Studio Pilates co-founder Jade Winter. The spring openings of these new locations coincide with the perfect timing for individuals seeking to revitalize their fitness routines and embrace a healthier lifestyle. The brand’s expansion into Canada will mark its presence in six countries and underscores its philosophy to change the way the world works out by making reformer Pilates more accessible to individuals across the globe. A ‘nova’ look for Pizza Nova in Barrie Pizza Nova is ready to start the new year in Barrie, Ontario, with a new look and feel. Opened in 1997 at 285 Dunlop St. W, the location is now remodeled and ready to continue serving its guests in the region with a brighter space with attractive wall artwork, more seating options with stand-up counters and upgraded counter display. “We are happy to be able to continue investing in our restaurant network,” says Domenic Primucci, president of Pizza Nova. “Updating our locations to the latest brand standards is important for our customers, but also our staff and franchisees.”

10 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Photo credit: Pizza Nova (December 15, 2023)

Studio Pilates International expands into Canada, three locations set to open in spring 2024

Pizza Nova franchisee Nasir Tahiri has been serving customers throughout the renovations at his Barrie location.

Nasir Tahiri, who owns and operates the franchise, has been serving customers throughout the renovations, which started in July. Throughout the past 12 months, Pizza Nova celebrated its 60th anniversary with activities that included a ringtone of its iconic jingle, a line of retro merchandise and the announcement of a $1 million dollar donation to Scarborough Health Network (SHN) Foundation. GIANT Creative takes home Gold at the Canadian Marketing Awards GIANT Creative, a full-service marketing and digital design agency based in London, Ontario, was awarded Gold in the Healthcare category at the Canadian Marketing Awards (CMA) for its Faces of Heroes campaign completed on behalf of the London Health Sciences Foundation (LHSF). “Our team is ecstatic about this recognition from the CMA Awards, which marks the first for our company,” says Andrew Stephenson, CEO and chief video officer at

INDUSTRY NEWS GIANT Creative. “At GIANT, we are passionate about working with notfor-profit organizations to create campaigns that drive awareness for important causes and help to ignite positive change.” GIANT Creative’s Faces of Heroes campaign sought to increase donor participation for LHSF’s life-saving research and patient care programs. The campaign’s goal was to encourage empathy and inspire action amongst potential donors by showcasing how everyone has the power to become a hero and play a vital role in providing patients with the special care they need. “GIANT Creative’s exceptional contributions, steadfast team commitment, and visionary creative leadership for the Faces of Heroes campaign have played a pivotal role in our mission to change the lives of patients for the better,” said Jon

Munn, associate vice president, marketing & communications, London Health Sciences Foundation. “Their unwavering support has been instrumental in securing vital funding for our hospital, profoundly impacting our ability to advance research, obtain crucial equipment, and most importantly, elevate patient care—which represents our highest calling.” The Faces of Heroes campaign included vignettes of 30 distinct donors from all walks of life. Each donor became an influencer and a role model, proving donations of any size are meaningful contributions. GIANT Creative then matched these “heroes” with other potential donors by age, gender, and interest across the various platforms they frequented. The results generated a total of 22.63 million impressions, 169,493 website visits, and over

20,000 new donors. More importantly, the campaign helped contribute $31 million in total revenue which will go towards research, patient care, new equipment, and other high-priority needs; it marks an increase of over 31 per cent compared to previous donation years. The partnership between LHSF and GIANT Creative showcases what can be achieved when true vision and creativity merge for a more meaningful purpose. Famoso Pizzeria reopens in St. Albert, Alberta After a temporary hiatus for renovations, Famoso Italian Pizzeria reopened its doors in St. Albert. With a newly customized environment that is modern and inviting, this Famoso location is reformatted as “Famoso Pronto” to drive faster service and better convenience

Franchise Canada January | February 2024

INDUSTRY NEWS while providing guests with a wider variety of exciting menu options to cater to an evening out, casual family dining, or convenient takeout. Famoso Pronto at the Inglewood Town Centre is an evolved concept that is streamlined for more efficient operations but still offers delicious food, warm hospitality, and a fun, relaxing atmosphere. With this opening, Famoso is ready to serve an even better experience to the residents of the St. Albert area and beyond. The first Famoso opened in Edmonton in 2007 and is known for its authentic Neapolitan pizza, which has regularly won awards as a guest favourite. Famoso is passionate about authentic Italian pizza, using imported Italian bell ovens; fresh, premium ingredients; and traditional culinary techniques in pizza making that have gone unchanged for generations.

Owner/operator Vikas Patal, a long-time franchise owner of Ricky’s All Day Grill in St Albert, is excited to extend his hospitality experience into his new Famoso Pronto restaurant. “With the opening of Famoso, we’ve got dining options available to our guests yearning for a true Italian flavour,” he says, adding that “the stylish, casual pizzeria embodies the look of old-school Italy with a modern flair and is a perfect place for sharing with the community.” This new Famoso Pronto will offer a menu with guest favourites like its Neapolitan pizzas, traditional recipe pasta, Italian-style sandwiches, tapas, and signature salads. Even more, it will also provide a new selection of 16” New World pizzas that are extra large, extra thick, and loaded with toppings, making them the perfect larger group dining options for

Reach Learning Centres were the first Orton-Gillingham intervention centres in Canada to support children and adults with learning difficulties such as dyslexia. Reach is also the leading provider of OG/ Structured Literacy training for teachers and interventionists in Canada. If you have a passion for helping kids reach their full potential and support teachers in their professional growth, contact us to learn about opportunities available in your area.

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takeout and delivery. Guests will also enjoy a selection of wines and beer and, of course, Italian-inspired desserts such as traditional housemade tiramisu, cheesecake, and artisan gelato. One of the unique features of this new dining concept is the way the takeout counter has been built to be such an integral part of the restaurant space—it has upped the takeout game to a whole new level. “With the return of the pizzeria as Famoso Pronto, we want to serve and wow our guests in the community,” says Raymond Ho, VP of marketing for FDF Brandz. “We’ve got bigger and even more convenient dining options available to our guests looking to enjoy great Italian flavours,” adding that “the restaurant embodies the look of a neighbourhood pizzeria that everyone will enjoy visiting.”

INDUSTRY NEWS With fast express takeout, online ordering, and delivery services, guests can once again enjoy their favourite Famoso pizzas and much more, all in the comfort of their own homes. Laser Clinics Canada opens latest Canadian medical aesthetics clinic at CF Markville Laser Clinics Canada announced the opening of its newest shopping centre location at CF Markville in Markham, Ontario. The clinic represents Laser Clinics’ seventh location in Canada and aligns with the global company’s mission to provide clients with greater access to medicalgrade advanced beauty services in the most convenient locations. “We believe in helping more people feel confident in their own skin,” says Jenna Caira, interim managing director at Laser Clinics

Canada. “Since our launch in Canada in February 2022, we’ve provided Canadians market-leading services and technology, offering laser hair removal, skin treatments, and cosmetic injectables. We look forward to being a part of the Markham community and expanding to even more markets in the year to come.” Laser Clinics Canada has signed a 10-year lease at Markville Shopping Centre. The clinic’s launch was commemorated with an official ribbon cutting

ceremony. Customers enjoyed exclusive offers and experiences including free LED treatment, free laser hair removal, underarms treatment, complimentary inject consultations, a gift with purchase, and a raffle to win one Revive and Repair Treatment. The Markville location will also have an experienced nurse injector every Friday from 3 p.m. to 7 p.m. Negin Karimi, a registered practical nurse and advanced cosmetic injector, joins the clinic and brings to its clientele over a decade of expertise in cosmetic enhancements, including advanced injection techniques and filler training in neuromodulators, dermal fillers, bio-stimulators, and PRP.

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Franchise Canada January | February 2024

2024 20 24 FRANCHISING

TRENDS THE FORCE OF FRANCHISING The trends and categories driving the franchise industry’s resilience in 2024 and beyond

s we usher in a new year, the franchise industry continues to stay strong, showcasing resilience in the face of changing consumer behaviour, economic flux, and new technology. This franchising trends package delves into some trends for the new year, unveiling the categories, technological integrations, and evolving consumer behaviours that will shape the franchising and business landscape in the upcoming months. Featuring an overall economic outlook, and then diving into more specific areas like changing consumer spending habits and spending across different demographics in the QSR category, we consider some of the most recent data from RBC, Moneris, and Environics. According to our franchising consultants from FranNet, even though the economy is slow, now is the perfect time

to start a franchise and get established before the economy swings up again. Get their expert predictions on the franchising trends and categories that are set to grow this year and beyond. Plus, see how you compare to prospective franchisees and how franchise systems are using new tech to boost their operations and service. As the industry embraces change and innovation, it offers a promising roadmap for franchisees and franchisors alike. The essence of franchising—its foundation on mutual support and a proven business model—remains a beacon for aspiring entrepreneurs. 2024 is shaping up to be a great year, and franchising continues to be a vibrant sector full of exciting opportunities. So, if you’re interested in becoming a franchise owner this year, this package is a must-read to inform the next steps on your franchise journey.

14 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

2024 FRANCHISING TRENDS

2024 Trends in the Canadian Franchise Industry BY GARY PRENEVOST AND GRANT BULLINGTON

2023 brought shifting economic conditions like a slowing Canadian economy, rising interest rates, and a challenging labour pool. Despite these economic challenges, the Canadian franchise industry remains vibrant for Canadians seeking alternative career options, or for investing in semi-absentee opportunities that create long-term wealth. As we navigate our way into 2024, multiple factors will influence the franchise sector. This article delves into these influences and speculates on the types of franchises that are likely to gain traction in 2024. Q: With changing consumer preferences and lifestyle trends, which types of franchises do you think will be more popular in 2024, and how do they fit with the evolving needs of the market? Gary Prenevost (GP): Evolving consumer preferences are expected to make certain types of franchises more popular in 2024; here are a few areas that we see as the most viable. Health and wellness Canadians are becoming increasingly health-conscious; as our population ages, our bodies “need more help” to continue to enjoy our lifestyle choices. Service-based franchises that cater to these trends are poised to continue growing in 2024. Fitness examples include boutique fitness studios (cardio and strength training, yoga, etc.); wellness examples include physiotherapy, massage businesses, and healthy food outlets. This trend aligns with the growing societal interest in well-being and the desire for healthier living options. It’s important, though, to understand the competitive landscape as some of these sectors are crowded, so the search for a strong location will require some patience. Education Education will continue to be another strong category. While demand for tutoring will continue, the supplemental education sector (STEM/STEAM: science, technology, engineering, arts, math) will see larger growth as these franchises help our kids be better prepared to use the evolving technology of the future.

B2B franchises For people with B2B sales backgrounds, business services that solve ongoing business needs will continue to flourish (i.e. digital marketing, IT support services, business coaching, property maintenance); these are often lower cost because they don’t require a prime retail location. Grant Bullington (GB): I think we’re going to continue to see franchise opportunities grow when their net commodity is additional time and convenience for the end customer. Services that allow a homeowner to spend more time with their family or on leisure are appealing. We’re also seeing that with a reduction in residential sales, owners are electing to invest in home improvements that deliver added enjoyment in the home for the medium to longer term. And as always, business-to-business franchise opportunities, where they provide their clients with any advantage in a competitive landscape (including cost savings), are consistently popular. Q: With higher interest rates and inflation, why is franchising a strong option for entrepreneurs who want to start their own business in the current economic climate? GP: The average Canadian recession is measured in months (only three to nine months on average), while economic growth cycles are measured in years. While we’re currently not in a formal recession, we won’t see another slow cycle for many years to come, so building a

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS foundation during slow economic times provides significant advantages over waiting. Yes, launching a business during sluggish economic times will be more difficult. But it also encourages the franchisee to be more strategic in implementing their business model, like having a heightened focus on customers and staff. As the economy regains momentum, these early experiences would have imparted crucial skills and helped establish a robust foundation for the business, enabling the franchisee and their team to be fully equipped to leverage the economic upswing right from its onset, unlike those who chose to wait until the end of the slowdown before starting. Think about the benefits of gaining a head start of one to two years over the competition. This early entry could position your business favourably to benefit from the growth cycle for many subsequent years. Choosing trend-driven franchisees in business categories that show historic sustainability, despite economic conditions, will provide the strongest opportunities. Faddriven options might be “hot” today and seem exciting to get into, but one has to assess their ability to stand the test of time. GB: There’s no getting around the fact that interest rates are at the highest that we’ve seen in recent decades. Initially, we saw a slowdown in the number of inquiries from prospective franchisees. Fortunately, the interest rate hikes have stopped and are expected to fall in the next couple of years. And we’re accepting the opinion of the economists who are telling us that they won’t return to 2020 rates. Franchising provides a backstop or safety net when it comes to investing in a business. It’s not necessarily more or less expensive to go with a franchised business, but by partnering with a proven model, you’re taking some of the risk out of the investment. One of the core benefits of the franchise model is that franchisors can provide clarity (and data) on what a franchisee can expect to deploy. Having this level of insight, coupled with guidance from the franchisor, means that there isn’t the same potential for costs to run out of control. Independent start-up businesses can’t offer the same level of safety. Q: How are demographic shifts, such as the preferences of younger generations or the aging population, influencing the types of franchises you predict will be successful in 2024? GP: Younger generations are showing a preference for experiences over material possessions. This is likely to boost franchises in the entertainment and hospitality sectors that provide unique experiences. A great example is Trapped, an escape room franchise that sold out its territories across Canada in just a few short years. Younger generations tend to eat out more frequently and have a broad palate, so specialty food franchises

(i.e. street food, international cuisine) will continue to attract attention. Younger generations are also incredibly tech savvy; they seek fast access to information and solutions. This will drive growing demand for services that offer convenience, while not compromising on quality of experience. Franchises providing time-saving solutions for the consumer (residential cleaning, home improvement/maintenance, dry cleaning/laundry) will continue to appeal to this demographic in 2024. These types of services are also appealing to the aging demographic who can no longer do the services themselves. GB: Younger generations place great value on solutions that provide freedom, so businesses that cater to this, and in a rapidly evolving fashion, stand to win. When it comes to aging populations, they control a significant amount of wealth, are living longer, and strive to maximize their enjoyment. At the same time, these older consumers look for options that allow them to safely remain in the home longer. Q: How do you predict emerging technologies, such as virtual reality (VR) or artificial intelligence (AI), will influence the landscape of upcoming franchise trends in 2024? GP: At its heart, the franchise business model is about optimizing businesses that have proven demand by bringing systems, processes, and support to enable franchisees to outcompete their non-franchised competitors. As exciting and fast growing as emerging technologies like AI and VR are, the rapid evolution inherent with this sector doesn’t allow for the development of proven systems and processes, simply because things change too fast. I do see, however, that these emerging technologies will have a profound impact on the franchising landscape in 2024. Would-be franchise buyers should pay close attention to how well franchisors are embracing technology to attract new customers, bring better experiences to existing customers, and help their franchisees run their businesses more effectively. When used effectively, AI can streamline operations and enhance decision-making through data analysis. Franchisors and franchisees that successfully integrate AI can improve their strategic planning, operational efficiency, and customer service. GB: In the short term, franchise systems will appear as though they are lagging behind non-franchised businesses that, by nature, are nimbler and quicker to react. However, with AI being so new in many areas, it may take some time to understand the true business cases for many applications. As things settle and key trends prevail, I predict that franchisors—because of their size and scale—will be in a great position to quickly implement the best AI solutions that offer the biggest (proven)

16 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

2024 FRANCHISING TRENDS impact. Franchisees will benefit when franchisors test out the applications, options, vendors, and solutions. The less technologically savvy owners can take advantage of not having to suddenly develop proficiency in areas that aren’t their strengths. So, while it might take a while to see the true benefits of AI in franchise systems, when it does happen, it will be just like past technology deployments where franchisors significantly outshine their competition. Q: With the rise of remote work and changing consumer behaviours, how are franchises adapting their business models to meet the evolving demands of a digitally connected and convenience-driven market in 2024? GP: The rise of remote work and the continued growth of digital connectivity are causing franchises to rethink and adapt their business models; the best franchisors work closely with their franchisees to capitalize on emerging opportunities that come with this shifting landscape. With an increasing number of individuals working remotely, service-based franchises such as digital marketing agencies and remote IT support services mentioned above stand to benefit. In addition, changing consumer behaviours, including the shift towards online shopping and delivery services, call for franchisors (especially in the retail and food sectors) to enhance their online presence and delivery capabilities, while closely managing the cost-benefit dynamic that comes with these enhanced service levels. By doing so, they can better meet the demands of a digitally connected and convenience-driven market while also protecting the profitability of their franchisees. GB: Some people have really enjoyed the switch from having to go into an office every day. Fortunately, there are many franchise opportunities that will allow people to get into business without forcing them to abandon their now-beloved work-from-home lifestyle. This could include B2B or a variety of service franchises opportunities. As an owner, when you’re not spending time in your home office, you’re out in the field meeting with clients or overseeing projects. In cases where the business requires more space than your living environment can sustain, there is always outside storage, warehousing, or offices. We saw a lot of franchisors were already quite well prepared, digitally speaking, before COVID-19. This allowed a quick pivot towards effective connection and convenience in 2020 and they have continued to improve in these areas since then. While a lot of these franchise opportunities already existed, there is now a heightened level of search interest for business opportunities that satisfy prospective owner’s evolving business-selection criteria.

Q: Do you have any parting comments about trends affecting the franchising industry overall? GP: The franchise landscape in Canada in 2024 will be shaped by a multitude of factors—this is no different than any other year. Franchisors and franchisees that can adapt to these changes by harnessing innovation to meet the evolving market demands will be well positioned to thrive in this dynamic environment. Ultimately though, success in franchise ownership rests with how well the franchisee can execute the business model of the franchisor they’ve aligned with. If the franchisee can’t run the business and lead their staff to deliver the product or service that meets or exceeds the customer’s expectations, neither the brand or the industry will matter because the customer won’t return after two or three visits, and they’ll likely leave negative reviews on the way out. Success in any franchise comes down to how well the franchisee can learn how to leverage their transferrable skills (the things they’re good at and like to do regularly) in a new business model. Finding the right franchise fit can be an exciting process. Researching franchise ownership is about considering making big changes in your life, which can be both scary and uncomfortable. Typically, you need to do about 40 physical hours of research over a few months before you can fully understand the franchisor’s business model and what it takes to run the franchise well enough to achieve your financial and lifestyle goals. Be prepared for lots of emotional ups and downs as you gather and analyze information from different sources. Your confidence in your skills and abilities will raise the excitement while your fears will mute the excitement. You have to go from “comfortable” (your current state) to “uncomfortable” (during the research mentioned above), then to “comfortable enough” where you can make an informed, educated, and defensible decision about buying your franchise. We hope that you can use these trends as a guide and a source of inspiration as you find the right opportunity for your skills, goals, and lifestyle in 2024! Gary Prenevost is one of Canada’s leading franchise experts; he and his team have helped over 2,000 people search for their optimum franchise. Gary’s book, The Unstoppable Franchisee: 7 Drivers of Next-Level Growth, was released in February 2023. Grant Bullington is the president of FranNet of Western Canada. He and his team have been helping serious prospective franchisees find and research opportunities since 2009. Grant is also the host of the Franchise Scout podcast.

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS

The Shifting Spend Priorities of Canadian Consumers 2023 CONTRIBUTED BY MONERIS

ravel and in-person events have been back for some time, and the process of returning to the office is well underway for many. While lockdowns and restrictions are no longer at play, some economic concerns that emerged through the pandemic still remain. Canadians are more cost-conscious as they navigate elevated inflation and a higher cost of living. To help identify and describe trends that have emerged under these conditions, The Shifting Spend Priorities of Canadian Consumers has returned. Through research conducted by Moneris and Angus Reid, findings presented within this report help capture the pulse of Canadian consumers and characterize their spending behaviours. The report focuses on the following three areas:

Growing concern Last year brought a mix of pandemic recovery and economic issues, including supply chain disruption and rising inflation. Concern was reflected in the response from Canadians in 2022. One year later, with increased cost of living and more cost-conscious consumers, more Canadians feel stressed about their financial future. As a result, almost eight in 10 Canadians are looking for ways to make their dollars go further. And when it comes to using those dollars, fewer are carrying cash compared to pre-pandemic.

CONSUMER SENTIMENT – How do Canadians feel their spending has changed? CONSUMER SPENDING – How does Canadians’ actual spending compare to sentiment? THE $1,000 QUESTION – How would Canadians adjust their spending with more money in their pocket, and how would they adjust it with less?

Spend category

2023

2022

Items of clothing you buy

46%

49%

Items to furnish or update your home

38%

36%

Number of food items you buy at the grocery store

27%

22%

Number of food or drink items you buy when you go to a restaurant (including takeout)

38%

34%

Number of restaurant outings (including takeout, fast food, or bars)

52%

53%

Number of entertainment outings (e.g., movie theatres, amusement parks, golf courses etc.)

60%

67%

Number of trips to the gas station

32%

39%

CONSUMER SENTIMENT To what extent do you agree… Perception statement

2023

2022

I feel stressed about my financial future

62%

59%

I am more likely to try to find deals/sales than I used to be

79%

74%

I am less likely to have cash on me than I was before the pandemic

57%

51%

Would you say that you’re doing/purchasing LESS than before?

Cutting back versus cutting out The majority of Canadians indicated they would be doing/ purchasing less than before in their survey responses. Comparing responses to the same question last year, a few trends stand out.

18 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

2024 FRANCHISING TRENDS More Canadians indicated they were purchasing fewer items at grocery stores (27 per cent versus 22 per cent), and restaurants (38 per cent versus 34 per cent), while the number of outings to restaurants remained unchanged. Entertainment remains as the top selection; however, as in-person events began bouncing back, we see a drop year-over-year (60 per cent versus 67 per cent). In addition to more in-person events and reasons to leave the house, more companies are mandating in-office days which may also be contributing to fewer Canadians cutting back on gas (39 per cent to 32 per cent). Would you say that you’re doing/purchasing MORE than before? 2022

Conservative spending and modest growth The prevailing cost-conscious consumer sentiment can be seen in the year-over-year spend data, with a modest overall increase in spend volume of one per cent. Starting with Entertainment, spend is down four per cent year-over-year, in line with the majority of survey responses indicating it was an area Canadians were purchasing/doing less of. Although sentiment is moving in the right direction for Entertainment, more time may be required before that growth is captured in the spend data. Despite competing forces of moderating items purchased and frequency of visits, Grocery and Restaurant spend both saw a modest three per cent increase in spend volume. While cost-conscious shopping is at play, other factors contribute as well. For example, the decrease in spend volume for Gas & Convenience is likely tied to gas prices falling from their peak in 2022 rather than a change in spend behaviour.

Spend category

2023

Items of clothing you buy

11%

Items to furnish or update your home

16%

Number of food items you buy at the grocery store

18%

19%

Number of food or drink items you buy when you go to a restaurant (including takeout)

13%

Average transaction size: July 2023 versus July 2022

Number of restaurant outings (including takeout, fast food, or bars)

18%

15%

Business category

Number of entertainment outings (e.g., movie theatres, amusement parks, golf courses etc.)

10%

Number of trips to the gas station

13%

11%

Cutting back versus cutting out, continued Although the majority of Canadians indicate feeling concerned for their financial future, and are doing/purchasing less, there is a portion who are spending more. Year-over-year, there is a three per cent increase in Canadians who said their number of restaurant and entertainment outings have increased. Despite economic conditions, there is a desire to enjoy leisure activities and events. Rather than cutting out these activities, Canadians’ survey responses show they are simply cutting back on how they enjoy them. CONSUMER SPENDING Spend volume: July 2023 versus July 2022 Business category

Examples

VOL % Change

Clothing stores

-3%

ENTERTAINMENT

Amusement parks, movie theatres, golf courses, etc.

-4%

GAS & CONVENIENCE

Automated fuel dispensers & service stations

-10%

GROCERY

Supermarkets, bakeries, candy, and confection, etc.

Hardware, furniture, lumber, masonry, etc.

-2%

RESTAURANT

Bars, full service, & quick service

SPECIALTY

Antiques, bikes, jewelry, sporting goods, etc.

TOTAL

Including categories not listed

APPAREL

HOUSEHOLD

Examples

ATS % Change

Clothing stores

ENTERTAINMENT

Amusement parks, movie theatres, golf courses, etc.

-4%

GAS & CONVENIENCE

Automated fuel dispensers & service stations

-10%

GROCERY

Supermarkets, bakeries, candy, and confection, etc.

-2%

Hardware, furniture, lumber, masonry, etc.

-5%

RESTAURANT

Bars, full service, & quick service

SPECIALTY

Antiques, bikes, jewelry, sporting goods, etc.

-2%

TOTAL

Including categories not listed

-3%

APPAREL

HOUSEHOLD

Rising inflation and falling average transaction sizes Across all categories, average transaction size (ATS) decreased by three per cent. Despite higher inflation, Canadian sentiment shows a growing financial concern for the future, and consumers looking for sales may contribute to a decrease in ATS. Other factors in addition to financial concern may also contribute. Again, the impact of falling gas prices can be seen in Gas & Convenience ATS decreasing. In addition, through the pandemic Canadians invested in their homes, which translated into an increase in spending. Now, with lifted restrictions, in-person events, and return to office pulling Canadians out of their homes, the five per cent decrease in ATS for Household may be a correction.

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS Number of transactions: July 2023 versus July 2022 Business category

Examples

Transaction % Change

Necessities like Groceries, Vehicle maintenance, and Home furnishing all saw decreases. Understandably, fewer Canadians would look to cut back on categories that are essential to day-to-day living. Specifically, regarding grocery spend, Canadians may already feel as though they have cut back enough, and there is limited room for further reductions in spend.

Clothing stores

-7%

ENTERTAINMENT

Amusement parks, movie theatres, golf courses, etc.

GAS & CONVENIENCE

Automated fuel dispensers & service stations

GROCERY

Supermarkets, bakeries, candy, and confection, etc.

Hardware, furniture, lumber, masonry, etc.

If you had an extra $1,000, where would you spend it (top three)?

Spend category

2023

RESTAURANT

Bars, full service, & quick service

Travel

44%

52%

SPECIALTY

Antiques, bikes, jewelry, sporting goods, etc.

Groceries

12%

46%

Home furnishing & house renovation

37%

48%

TOTAL

Including categories not listed

Vehicle maintenance & updates

17%

35%

Clothing & apparel

36%

37%

Specialty items or hobbies ( jewelry or sporting goods)

47%

23%

Entertainment outings

56%

31%

Restaurants

52%

28%

APPAREL

HOUSEHOLD

An extra trip to the store Instead of stocking up and making the most of each trip as we saw during the pandemic, Canadians have increased the frequency of their visits to the grocery store. While Canadians might be modifying their behaviour by purchasing fewer items, they may be also compensating by making more trips to pick up missing items or take advantage of sales at multiple stores. Also appearing as one of the top three areas Canadians said they spent less on, Apparel sees the largest decrease in transaction count year-over-year. THE $1,000 QUESTION If you had $1,000 less, what would you cut back on (top three)? Spend category

2023

Travel

44%

2022 52%

Groceries

12%

46%

Home furnishing & house renovation

37%

48%

Vehicle maintenance & updates

17%

35%

Clothing & apparel

36%

37%

Specialty items or hobbies ( jewelry or sporting goods)

56%

31%

Restaurants

52%

28%

2022

From flying away to filling the fridge While we saw some significant changes in the categories Canadians would cut back on, areas where Canadians would splurge remain relatively unchanged. Slightly more Canadians selected travel in their top three. Grocery also saw an increase as Canadians look to offset the measures taken to combat inflation and higher cost of living. While home furnishing remains in the top three, it saw the largest decrease year-over-year, down four per cent. Again, when Canadians were asked how they would modify spending, the vast majority opted to modify quantity over quality. For the scenario where respondents had $1,000 less, 79 per cent said they would buy fewer items. For the scenarios with $1,000 more, 62 per cent said they would buy more items. Moneris: Moneris is Canada’s largest provider of innovative, unified solutions for mobile, online, and in-store payments, processing more than one in three transactions. Serving businesses of every size and industry, Moneris offers hardware,

Sacrificing spend for core categories Last year, Canadians were asked what they would cut back on if they had $1,000 less to spend. Asking the same question this year, we see how sentiment has changed, and what the new priorities of Canadians might be. In 2022, travel most consistently ranked in the top three of categories to cut back on. Although it’s still a popular category to cut back on, far fewer Canadians have selected it in their top three. Meanwhile, other traditionally discretionary categories like Restaurants, Entertainment outings, and Specialty items saw significant increases as areas Canadians would look to sacrifice with reduced buying power.

software, and solutions to help transform the way businesses grow and operate, in payments and beyond. For more information, please visit www.moneris.com and follow @moneris.

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2024 FRANCHISING TRENDS

Canadian Economic Outlook CONTRIBUTED BY RBC (PUBLISHED ON DECEMBER 12, 2023)

The global economic growth backdrop has continued to slow as the lagged impact of aggressive central bank interest rate hikes continue to build alongside a continued squeeze on household purchasing power from the earlier rise in food and energy prices. Commodity prices are still high but have edged progressively lower. The U.S. economy remains an outlier with strong GDP growth through Q3 2023. But households are running out of savings and ‘excess’ labour demand has evaporated with further declines in job openings expected to begin to push unemployment more significantly higher. We continue to expect the U.S. economy to soften in early 2024. GDP edged lower in Europe and was essentially unchanged in the U.K. over the summer. Canada’s economy continues to soften as debt payments rise Canada’s economy passed a tipping point some time ago. A surge in population propped up measures of total economic activity earlier in 2023—each new arrival boosts both the productive capacity of the economy and consumer demand. But GDP fell 1.1 per cent (annualized) in Q3 despite those tailwinds, and per-person output has now declined for five straight quarters. After inflation, consumer expenditures per capita fell to one per cent below pre-pandemic levels in Q3. Rising debt payments and higher fuel and grocery bills have left household purchasing power diminished. And labour markets are softening, with employment no longer rising fast enough to absorb a rapidly growing available workforce. The unemployment rate has risen by 0.8 percentage points since April—a magnitude of

increase that historically usually only comes in the early stages of an economic downturn. Job openings continue to retrench, down 30 per cent year-over-year as of September. Household savings are still very high, and that can act as a backstop in times of economic stress. But the cash stockpile is not evenly distributed across income cohorts and is increasingly unlikely to be spent in the near-term. Households typically save more (and spend less) when the outlook is uncertain and consumer confidence fell below the lows of the 2008/09 recession in November. And household savings may be higher in part to accumulate funds among households that will still see significant increases in mortgage payments, including a mortgage refinancing wave coming in 2025. The household saving rate rose to 5.1 per cent in Q3 (still well above the 2.1 per cent pre-pandemic rate in 2019).

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS

Slowdown in domestic demand expected to ease as the BoC cuts rates Consumer spending is expected to remain under pressure in the near-term as rising debt payments and higher food and energy prices continue to soak up purchasing power. Businesses have also been pulling back. Business investment on machinery and equipment fell 14.4 per cent in Q3. For the first time since the pandemic, businesses tracked by the Canadian Federation of Independent Business ranked concerns about demand for their products as a larger factor limiting production/sales than labour shortages. Housing markets have looked wobbly with headwinds from higher interest rates being countered by high rates of population growth and limited supply of homes available. Canadian labour shortages easing as demand slows

% of businesses listing factor limiting ability to increase sales/production

Canadian per capita consumption is in-line with prior recessions Household comsumption (real) per capita index (100=recession peak)

Source: Statistics Canada, RBC Economics

Economic outlook to brighten starting in the second half of next year Once central banks are able to begin easing off the monetary policy brakes, we expect the economy to perk up over the second half of next year. The impact of higher interest rates will continue to ripple through the economy with long lags—see more on the expected impact of mortgage renewals on the household debt payments in 2025 below. But those challenges are likely manageable as long as labour markets are beginning to improve by then. We expect GDP growth will begin to pick up in the second half of 2024 and into 2025. Central Banks to ease off the brakes in 2024

Source: CFIB, RBC Economics

Central banks have done their job: additional hikes likely off the table While the near-term economic outlook is not exactly rosy, the good news is that higher interest rates and slower growth are working to ease inflation pressures. The full impact of rate hikes to-date has yet to be felt, and downsides remain if the slowdown in labour markets accelerates. Economic data to-date is still tracking consistent with a ‘mild’ downturn by historical standards. And easing in the breadth of inflation pressures in both the U.S. and Canada combined with softer economic data has increased the odds that the U.S. Federal Reserve and the Bank of Canada (BoC) will be pivoting to interest rate cuts in the year ahead. That won’t happen right away—central banks will be cautious about declaring victory over inflation too early. But we expect both the U.S. Federal Reserve and the BoC will be shifting to interest rate cuts in the first half of 2024.

Source: Haver, RBC Economics

PROVINCIAL OUTLOOK We expect minimal economic growth in Ontario (+0.2%), B.C. (+0.3%), and Quebec (+0.4%) in 2024 as households remain under heavy pressure from high interest rates and a soft U.S. economy weighs on external trade. Though the Prairie provinces won’t be immune to the slowdown, an optimistic investment outlook should keep Alberta (+1.7%), Saskatchewan (+1.6%), and Manitoba (+1.2%) growing at a modest pace. Meanwhile, a resurgence in

22 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

2024 FRANCHISING TRENDS natural resource production and partial recovery in construction investment may be enough to lift growth in P.E.I. (+2.1%), Newfoundland and Labrador (+2.0%), and Nova Scotia (+1.2%) in 2024. A weaker trade outlook in New Brunswick (+0.9%), however, is likely to keep growth relatively muted in the year ahead. BRITISH COLUMBIA – Spending and investment lull to continue We expect many of the challenges that stunted economic growth in B.C. in 2023 to remain pressure points for the province in the year ahead. Though there’s no telling of what 2024 will bring insofar as natural disasters, high interest rates and strained affordability are poised to keep the spending and investment lull going for a little longer. And with a drop in net new projects, we don’t expect to see a big improvement to the province’s softening labour market either. This should keep B.C.’s overall economic growth at the back of the pack in 2024 (+0.3%). ALBERTA – Tailwinds moderating in 2024 Though tailwinds from commodity markets and strong population inflows are waning, Alberta is slated to keep its place near the top of our provincial growth ranking in 2024 (+1.7%). Its relative affordability advantage and impressive growth streak continue to entice a record number of new migrants, keeping upward pressure on aggregate spending, investment, and employment growth. Despite the upside strong demographic trends bring to overall growth, a flourishing population alone won’t be enough to shield Alberta’s economy from moderating further in 2024. SASKATCHEWAN – Stage set for 2024 rebound After a tough year for crop production and fertilizer exports, better growth prospects are on the horizon for this provincial economy. Indeed, Saskatchewan is set to buck the weakening trend in 2024 as the outlook for potash improves and (hopefully) better weather supports a more favourable growing season. We see these tailwinds bringing economic growth up to 1.6% in 2024—well ahead of the Canadian average. MANITOBA – Slowing its stride This past summer’s drought in Manitoba turned out to be less detrimental to the province’s agricultural sector than we had anticipated. Significantly upgraded crop production estimates from Statistics Canada prompted us to upwardly revise our 2023 real GDP projection to 1.7%—a 0.3 percentage-point increase from our September outlook. Still, this represents a notable moderation from the 3.3% recorded in 2022. We expect the slowing trend to extend into 2024. As businesses and

consumers keep a tight grip on their purse strings amid high costs, real GDP growth is poised to moderate further to 1.2%. ONTARIO – Gearing down Though Ontario’s growth is expected to come in close to the Canadian average this year, a steep moderation is likely to bring it to the back of the pack in 2024. Not only will high interest rates continue to hamper housing market activity and spending next year, but slower growth in the U.S. is also poised to dampen the manufacturing outlook. Record investment in EV battery plants will partially offset the weakening trend; however, manufacturing developments in southwestern Ontario won’t be enough to fully counteract the broader softening. As such, we have real GDP growth in Ontario pegged at just 0.2% in 2024, down from 1.1% in 2023. QUEBEC – Bruises to take longer to heal The Quebec economy is heading into 2024 with plenty of bruises. The past year hasn’t been kind with massive wildfires, high interest rates, the sharp increase in the cost of living, and lately, large labour strikes weighing heavily on activity. Quebec, in fact, is one of only two provinces likely having fallen into a mild recession in 2023 (Newfoundland and Labrador, the other). We expect 2024 to be kinder, though just barely. And any noticeable improvement in the outlook might come only in the back half of the year once cuts in interest rates provide relief and trading partners turn their situation around. We project annual growth to remain sluggish overall, inching higher from 0.3% in 2023 to 0.4% in 2024. NEW BRUNSWICK – Weaker trade dims growth outlook New Brunswick’s economy has geared down significantly from the pandemic recovery’s high point. Indeed, this provincial economy has already posted one of the steepest slowdowns in growth between 2021 (+5.3%) and 2022 (+1.1%) of all provinces. Though strong in-migration and relatively low debt burdens support a robust household sector, headwinds from a softening global economy are picking up and holding back provincial exports. As such, we’ve downgraded our 2023 forecast to 1.1% from 1.4%. We expect the provincial economy to decelerate further to 0.9% in 2024, making New Brunswick the only Maritime province to experience a further slowdown in the year ahead. (continued on page 25)

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS

QSR Franchise Trends: Understanding How Canadian Consumers Spend on Food BY ANNA RACOVALI AND EVA HONGYA-HE, ENVIRONICS ANALYTICS

espite economic concerns in the aftermath of the pandemic and inflation slowing down some sectors, certain industries, specifically quick service restaurants, are witnessing strong recovery and growth. Statista reported an all-time high market size ($33.6 billion USD) of the Canadian quick service restaurant sector in 2022, a whopping 22 per cent growth compared to the previous year. How have things been looking in 2023, and more importantly, how can the QSR industry cater to the emerging needs of Canadians? In the 12 months leading up to November 2023, the QSR industry continued its robust growth, attracting 825 million visits from Canadians, a 28 per cent increase from the previous period. Similar to 2022, there was a high visit volume in spring and early summer from March to May 2023. When comparing year over year (YOY), the summer months saw significant growth compared to 2022, with August 2023 experiencing a 52 per cent YOY increase from August 2022, and September 2023 with a 47 per cent YOY increase. To understand more nuances across different audiences in the Canadian market, let’s look under the hood and see how different demographics navigate their experiences with fast food. Around 65 per cent of Canadians tend to visit QSRs at high rates, and these fast-food lov-

ers include four distinct audience groups: diverse families, young singles and families, affluent families, and older families/empty nests. Diverse families, a larger group accounting for 24 per cent of the Canadian market, encompass large young to middle-aged families earning average incomes. This group is highly diverse, with 60 per cent of them belonging to a visible minority group, the majority of which are immigrants to Canada, and they often speak non-official languages at home. They are happy to splurge on food, spending 33 per cent of their food allowance on food purchased from restaurants. Busy with their jobs across all sectors to support their larger families, they often patronize QSRs on a regular basis. This group is a big fan of all QSR formats, including eat-in, delivery, drive-thru, takeout, etc. Very open-minded when it comes to food, they tend to dine from all cuisines, with Indian, steak, and bistro-style food being their favourites, among others. Young singles and families, representing eight per cent of the Canadian population, tend to be younger residents working either white-collar or service jobs in the urban areas. They tend to earn below-average incomes and spend lower amounts (about $12,000) on food annually, 35 per cent of which is allocated to food from restaurants, especially snacks and beverages. These young

24 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

2024 FRANCHISING TRENDS urbanites tend to rent in dense apartment buildings and enjoy the proximity and convenience of QSR restaurants around them. Many are rooted in city life, taking transit, or walking to places, and enjoying a quick delivery or takeout meal. Busy with their career and social life, they often feel stressed about not having enough time and take a break from cooking by ordering a meal. Burgers, donuts, coffee, and tacos are popular for this young audience. This group has an average minority presence of 24 per cent; however, they’re eager to learn from other cultures and lifestyles and might appreciate diverse representation in the QSR industry. Affluent families are the wealthiest audience and account for 20 per cent of the Canadian market. They are home to large middle-aged families with teenagers or adult children living at home. Breadwinners in these households tend to earn 43 per cent more than the average Canadian household income and drive to their whitecollar jobs in management, business, and science. Their deep pockets allow them to splurge across all categories including food, spending more than $6,000 on food from restaurants each year. They are overall health conscious and strive for a more wholesome lifestyle and diet, but occasionally enjoy the pleasure fast food can offer. They might prefer QSR chains that appeal to their effort toward health. This group is more likely to opt for drive-thru and delivery services when it comes to food; burgers, donuts and coffee, and Italian cuisine are more popular for them. Older families and empty nests, representing 19 per cent of the population, are comprised of mature residents earning lower incomes. These blue-collar workers bring home below-average incomes ($102,000 per household) compared to the national average and likely keep their food budget down by minimizing the share of their wallet allocated to food from restaurants, spending nine per cent less on food from restaurants compared to the average Canadian. They tend to be concerned about their financial future as many of them live on fixed incomes, and likely choose a restaurant based on the price and value it offers. Drive-thru QSR restaurants tend to be more popular with this group, and they are less likely to use delivery service, likely due to the additional cost incurred. Calorie-rich food such as donuts and coffee, burgers, and pizza are among this group’s favourites. Canadians have become more strategic in where they purchase food due to rising inflation and the reduction of discretionary income, causing financial vulnerability to become a key driver in where customers choose to shop. Understanding the food preferences and values of Canadians is essential for the QSR industry to continue growing through 2024 and beyond.

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NOVA SCOTIA – Investment boost strengthens growth outlook Recent data suggests Nova Scotia may have struggled more in 2023 than we initially thought. Deteriorating affordability has weakened the housing market, pushing year-to-date resales down in Nova Scotia more than any other province (+20% year over year). And though nonresidential construction investment has been strong in 2023, softness on the residential side has been a drag on total construction investment. Manufacturing shipments have also come down as the province’s largest export markets brace for recession. All in all, growth will be quite a bit softer than the September forecast. At 0.8%, Nova Scotia’s economy is likely to trail behind the Canadian average in 2023 before making a modest rebound in 2024 (+1.2%). PRINCE EDWARD ISLAND – Set to gather even more momentum 2024 is likely to be a slightly stronger year for P.E.I. Not only does robust population growth and easing inflation pressure support a robust outlook for household spending, but a ramp up in construction is also slated to contribute to overall growth. Though P.E.I. won’t be recovering from a particularly hard year, the province is likely to be one of three that buck the weakening trend in 2024. At 2.1%, our forecast calls for real GDP growth in P.E.I. to, once again, top all other provinces in the year ahead. NEWFOUNDLAND AND LABRADOR – Energy sector to kick-start recovery Alongside the oil production dip, a dimmer outlook for the province’s mining sector and construction investment are raising the odds that Newfoundland and Labrador’s economy will contract for a second consecutive year in 2023 (-2.0%). Better growth prospects, however, are likely on the horizon. As of November 2023, all four offshore oilfields were back into operation. A brighter outlook for the province’s key mining sector is also pencilled in for the back half of 2024 as a recovering global economy spurs demand for commodities. Strength in the natural resources sector is raising the odds that Newfoundland and Labrador will be one of the few provinces to buck the weakening trend in 2024 with a growth rate of 2.0%. Authors: Craig Wright, Nathan Janzen, Rachel Battaglia, Carrie Freestone, Abbey Xu

Source: Environics Analytics, Statista - Market size of the quick service restaurant sector in Canada from 2012 to 2022

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS

Tech Innovations Reshaping Franchising into 2024 and Beyond

Three franchise brands on why harnessing technology is the future for growing and sustaining a profitable franchised business BY JOELLE KIDD

From increased hybridity of in-person and digital spaces to the rapid advancement of artificial intelligence (AI) technology, we live in a fast-paced era of new digital tech. What does all this change mean for franchised businesses? For those willing to embrace new technology solutions, it can mean a world of possibility: lower costs, simpler systems, and more streamlined operations. While business owners know the importance of the human touch, many businesses are finding ways to incorporate digital technology that supports their brand’s unique strengths. Franchise Canada spoke to three such brands in three different sectors to see how franchise systems are leaning into the tech revolution.

26 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

2024 FRANCHISING TRENDS Fibrenew Despite its status as a well-established restoration brand, Fibrenew keeps on the leading edge of adopting technology to make it easier for franchisees to find business success. “We’re very tech-savvy,” says Jesse Johnstone, president of Fibrenew. “We’re always pushing the envelope and doing anything we can do to help the business grow, anything we can do to help franchisees run their business more efficiently.” Founded in 1987, Fibrenew is a mobile franchised business that specializes in restoring leather, plastic, and vinyl “on furniture, on vehicles, in restaurants, medical clinics, offices, airplanes, boats, or trains, wherever it happens to be,” says Johnstone. Teams visit clients’ homes and businesses to do the restoration work. Today the brand has more than 300 locations in six countries and is on track to surpass 325 locations next year. Fibrenew provides franchisees with their own website and support in SEO and online ad optimization. The brand has also built its own intranet platform, called Hive, that houses training content and allows franchisees to connect with each other, communicate with the brand’s support team, and more. Franchisees can access Hive on any device, to “look up technical information if they’re working on something in the field, ask a question of the support staff, or whatever their needs happen to be,” says Johnstone. They’ve also partnered with a company called Jobber to manage client requests and help franchisees organize follow-up communication, from scheduling visits to creating estimates and invoices. “It’s been a huge win for us,” says Johnstone. “Our franchisees are much more organized, and they’re able to do more jobs because of how organized they are. And then on the professional front, the customer side is elevated as well, because everything is seamless.”

Also helping franchisees streamline their efficiency is the Colour Eye colour-matching device and app. Developed over three years, the device is a reader about the size of a cell phone which can be held up to any material the technician is working on. “It reads the colour, and then sends the colour through Bluetooth to an app that digs into a database we developed that uses our colour system,” Johnstone explains. A Fibrenew technician only needs to scan the item they are repairing and the device breaks down the precise colour blend of the fabric. “In training, franchisees used to have to take an entire week to learn how to match colour; now they do it in one day,” Johnstone says. Ultimately, Fibrenew’s excitement about quickly adapting and adopting new technologies is in service of franchisees, who enjoy the flexibility and efficiency of this mobile business. The brand looks for franchisees who like working with their hands, provide great customer service, and can pass a colour identification test.

Learn more at LookforaFranchise.ca

Franchise Canada January | February 2024

2024 FRANCHISING TRENDS Pierogi House As a brand both family-run and forward-thinking, the newly franchised Pierogi House is bringing a passion for Polish food and cutting-edge technology into the fast casual restaurant space. Since opening in 2012, Pierogi House has grown to three locations in the Ontario market and is now developing new units with its first franchisees, says Mike Hejmej, president/CEO. “My dad brought the concept: he built the first one by hand, because he’s an architect and a handyman. My mom brought all the personality, the love, and the experience with customers from her previous career,” says Hejmej. “And then I came in and I just brought in some of the business acumen for standardizing processes [...] as well as all the tech experience to build something that is really, really scalable.” The concept serves fast-casual Polish food including pierogies, kielbasa (smoked sausage), and schnitzel, and has a small takeaway market with frozen items for guests to take home, such as cabbage rolls, borscht, and their famous pierogies. This market component makes the brand unique in the QSR space, Hejmej notes. Hejmej’s background in tech and consulting has helped transform the family business into an innovationdriven franchise system. While most small- and mid-sized franchise systems partner with a variety of services and applications to run their backend operations, Pierogi House’s backend system is entirely custom built. Hejmej says the bespoke, integrated system saves franchisees time and reduces their costs. For instance, estimating how many staff members a location will need in any given coming week is typically a complicated process involving comparing data from several different systems. “You would have to see both the payroll hours of previous weeks, then tie that to the sales data for previous weeks and see how much payroll you’d have per hour of sales,” Hejmej explains. “Unless you’ve

built all your systems from scratch [...] you’re just doing it by pen and paper, and that’s not really that accurate.” With Pierogi House’s integrated system, a code runs every week to compare previous weeks, using machine learning to optimize labour costs. Similarly, the brand’s system can monitor inventory levels and compare against a trend line of sales to suggest the most efficient weekly ordering for the franchisee. While vendors like Square and Toast make adopting technology on the front-end easy, integrating back-end systems is difficult because of the variance in each franchise’s needs. This kind of integration is rare outside of a massive system with hundreds of units, Hejmej says, but he believes smaller, newer franchises with the tech knowhow can capitalize on newly available tools like ChatGPT to stand out in the coming years as they build their own back-end systems. In an economic climate where budgets are tight and every percentage point counts, Pierogi House’s integrated system gives it a competitive edge. While the brand might be focused on efficiency, it also has a lot of heart; the goal is still to “delight customers,” Hejmej says. Franchisees who join the brand receive full training and opening support from the family business. “My mom is the head trainer,” Hejmej notes. “She has served, we estimated, five million pierogies! She’s got experience. You get the training with the family. Family brand, family support.” When looking for franchisees, the brand seeks capable, hard-working operators with a passion for Eastern European cuisine. “The best quality that a franchisee brings is passion.”

Learn more at LookforaFranchise.ca

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2024 FRANCHISING TRENDS Studio Pilates International “There’s nothing worse than going to a workout and standing there scratching your head for half of it because you don’t know what to do,” says Jade Winter, cofounder of Studio Pilates International. That’s why Winter and his wife started a system of Pilates studios that harness technology to give customers a personal training-style experience at a group workout class price. The brand’s SPTV—Studio Pilates Television—is an ever-changing series of videos that play in studio classes, along with an audio track to show and explain how to do each exercise. Each day brings a new daily workout, played in the brand’s 91 locations across five countries. “My wife and I instructed for a decade in our business before we went on to franchise it, and we’ve been franchising for 10 years,” says Winter. “We took all those learnings from those 10 years of mastering the business and the delivery, and we made it into something that’s easily consumable, easily digestible, for someone who is at a [high] level all the way through to someone who has never exercised a day in their life.” For franchisees in the system, this high-tech method offers many benefits. While independent exercise studios struggle to find consistent, talented instructors and train staff, Studio Pilates International’s system means it’s easy to get up to speed. “Instructors come, graduate our training course, and they’re great from day one,” says Winter. Along with SPTV, the brand is continually adapting to use the latest technology to streamline processes for franchisees, including cloud-based bookkeeping and accounting, an app and online system for booking cli-

ents, and a dashboard that shows franchisees data from across the system, worldwide. “I think that transparency has really helped our franchisees to know who are the leaders in the pack, and gain advice from others as well,” says Winter. The brand has also begun adopting AI tools for projects like generating training videos and is looking at ways to use this new technology to a greater degree in the future. Franchisee training takes place online, while instructor training is done in person, often within the instructor’s own studio. The brand now has around 1,500 instructors across its network, Winter says. “That’s one of our key sustainable competitive advantages, I believe, to be able to train world-class instructors rapidly.” While Studio Pilates International franchisees come from a wide range of career backgrounds, Winter says the most common are “corporate refugees,” who have left their corporate roles to find something more fulfilling. “It’s not a cliché we are blessed to be able to change people’s lives on a daily basis,” Winter says. “The journey will always be worthwhile when a customer comes up to you and says, ‘Thank you for being here, thank you for opening this business and changing my life.’”

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Franchise Canada January | February 2024

2024 FRANCHISING TRENDS

Snapshot of a Prospective Franchisee As 2024 begins, many Canadians are looking to franchising to start their own business. Here are some of the characteristics of these potential franchisees and a breakdown of what they’re looking for in a franchise opportunity. Many prospective franchisees (31%) start by attending a franchise tradeshow or by reading Franchise Canada magazine (20%) or the Franchise Canada Annual Directory (11%).

Male Female

80% 20%

Other gender identity 1%

(Note: some numbers may not add up to 100 on account of multi-section responses or because some selections answered unknown or chose not to respond.)

What kind of franchise are they looking for?

How old are they?

61+

How much money do they have to invest?

13%

Health/Beauty/Fitness/ Senior Care 9% 9%

24%

Financial independence

23% 18%

Passion for the industry/brand

10%

Investment diversification

10%

Other

16%

$10K - $50K

24%

$50K - $100K

23%

What do they consider the most important as they evaluate a franchise opportunity?

$100K - $200K

21%

Investment level

10%

Brand recognition

$350K - $500K

Support and training

$500K - $1M

Uniqueness of concept

Company values/culture

$200K - $350K

Over $1M

32% 26% 19% 15% 9%

Children’s products and services 8%

When are they looking to invest?

What do they want to learn more about? Franchise operations

17%

Other

Within six months

Financial management

14%

Within two years Within three years

SK 1%

33% 10% 5%

Marketing and advertising

12%

Site selection and real estate

10%

Legal and compliance

10% 37%

Other entries

What are their primary concerns when it comes to investing in a franchise?

Where do they live?

AB 6%

52%

Within a year

Automotive Products and Services 7%

BC 38%

Under $10K

Desire for entrepreneurship Work-life balance

13%

51-60

Consumer products and services 13%

B2B

24%

41-50

Food – Full service restaurants 16%

Retail

34%

31-40

Food - Quick service restaurants (QSR) 16%

Why do they want to become a franchisee?

24%

18-30

Maritimes 2%

MB 1%

ON 50%

QC 2%

30 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Initial investment costs

19%

Finding the right local market

15%

Franchise contract terms and obligations

13%

Ongoing operating expenses

11%

Competition within the industry

11%

Other

30%

Living the Good Life From tanning salons to ultra-private gyms, three franchises for well-rounded lifestyles BY GEORGIE BINKS

Franchise Canada January | February 2024

LIVING THE GOOD LIFE

LIVE WELL Exercise Clinic LIVE WELL Exercise Clinic CEO Sara Gilbert recalls, “I spent the first part of my career working as a clinical exercise physiologist in hospital-based cardiac rehabilitation. I would see patients go through a 12-week program, and then have nowhere to continue their exercise and health journey.” Gilbert realized there was a niche that needed to be filled and started the franchise, which now has more than 10 locations in three Canadian provinces. She explains, “We often hear from our members that they tried traditional gyms and didn’t feel like they belonged. At LIVE WELL, everyone belongs. A real testament to the success of our clinics is not the expansion of our franchise model, but the retention of our client base. Many of our LIVE WELL members have been with us for three, five, or even 10 years.” “We provide clinically supervised exercise programs and lifestyle counselling to help our members live life to the fullest, in a safe, supervised exercise setting,” says Gilbert. According to Gilbert, the benefits of being a franchisee include knowing you’re not just going to improve members’ lives, but the lives of their family, friends, children, and grandchildren. “We can help someone who has suffered from osteoarthritis move better. We have helped people with diabetes reduce their need for medications, and we have helped widows facing enormous grief find a new zest for life.”

Gilbert explains there are challenges. “Running a business takes grit and determination. It takes dedication, perseverance fuelled by a passion to help people,” says Gilbert. She also notes that franchisees receive all the systems they need to run a successful business, from choosing a space and designing the clinic to programming materials and marketing programs. So, what should franchisees bring to the table? “An ideal franchisee is committed to helping others achieve a healthy lifestyle, and is also a team player,” says Gilbert. “We ask our franchisees to be invested in our programming, our marketing efforts, and be open and willing to adapt and grow with us.” Looking to the future, Gilbert says, “Active aging is one of the biggest trends for 2024 and beyond. Every day we receive calls from potential members who know they need to take control over their health. We believe LIVE WELL is positioned uniquely in the Canadian fitness business landscape to help thousands of Canadians achieve their best life.”

Learn more at LookforaFranchise.ca

32 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

LIVING THE GOOD LIFE

“The common goal with most franchisees is to have a little bit more flexibility and financial freedom, [and] spend more time with their kids.”

Tan on the Run If you’re wondering where Nicole Hyatt’s glow comes from, it’s not just the spray tan. “I’ve been doing this for so long; I really love what I do.” Hyatt is the founder of Tan on the Run. Founded 18 years ago, the brand offers a mobile spray tan service. “We go to the customer’s home, hotel, office, or movie set and give them a spray tan.” Hyatt started franchising about 10 years ago. The company now has 40 franchise locations, with the majority in Canada, and two in the U.S., plus one each in Mexico, Egypt, Namibia, and Uruguay. "I deal with all women as far as the franchisees and even clients go—single mothers, people changing their career path, every walk of life,” says Hyatt. “The common goal with most franchisees is to have a little bit more flexibility and financial freedom, [and] spend more time with their kids.” Benefits for franchisees include low overhead, relatively low investment, and great support. For franchisees, the pandemic provided some challenges. “We pivoted a bit and had the ‘Quaran-tan’ package where people could apply self-tanners at home,” recalls Hyatt. She says that the business is on the right track again as it recovers from the pandemic.

When it comes to providing support, Hyatt says she makes time for one-on-one interaction with franchisees. She also stays involved in the system’s brand reputation. “We’ve been around so long nobody can really beat us when it comes to brand recognition for spray tanning in Canada.” The franchise also provides initial set-up training and ongoing support, including monthly meetings through a voice app. Most franchisees start out as owner-operators and hire employees as time goes on. Hyatt says the most important qualities for franchisees are having the drive and motivation—“the hustle to get up and be self-disciplined. You have to wake up every day just as excited about your business on year five as you did on day one.” And before long, franchisees may find they’re sporting that happy glow, too.

Learn more at LookforaFranchise.ca

Franchise Canada January | February 2024

LIVING THE GOOD LIFE

“Because Uniglobe agencies are locally owned and operated, they are able to provide agile, flexible, and responsive service to their clients.”

Uniglobe Travel International “Travel is exciting,” says Martin Charlwood, president and COO, Uniglobe Travel International. “So many people love to talk about travel and share their experiences. Pretty much every day, something new or different is happening, like up-and-coming destinations, new adventures, global diversity and cultures, and different ways of life.” Uniglobe specializes in serving the needs of smalland mid-sized companies and their travellers. “Uniglobe offers master franchises in regional territories which are then responsible for the sales, support, and servicing of independently owned Uniglobe Travel agencies within their territory,” describes Charlwood. The franchise, started in 1981 by U. Gary Charlwood, has grown from a single location to include a presence in 40 countries, and to servicing clients in 90 countries. Charlwood explains, “It was founded on the idea that a common set of values, service standards, and power in numbers could build a world-class travel brand. Our culture from day one included an ability to be flexible, to find innovative solutions, and to see possibilities where others simply could not. “The Uniglobe network provides immense value to agencies who join the system, enabling them to tap into our expertise while focusing on growing their individual business locally,” says Charlwood. “Because Uniglobe agencies are locally owned and operated, they are able to provide agile, flexible, and responsive service to their clients.” Franchisees have to manage a constantly changing environment, not only for their own businesses but also

for their clients. “This requires flexibility, creativity, and problem solving. The benefit is the satisfaction of overcoming these challenges and enjoying the outcome, with the added benefit of having a collective group of fellow franchisees,” says Charlwood. Even though the travel industry is constantly changing, Charlwood says Uniglobe can adapt. “Given that we operate in multiple countries across multiple markets, we’re able to harness best practices from one part of the world and apply them in others for the maximum benefit to all.” To meet challenges in the travel industry Charlwood says, “Our team stays on top of industry changes and trends and prepares accordingly to support agencies.” Uniglobe provides training in sales, marketing, customer service, and business management, as well as one-on-one ongoing support. Franchisees must bring flexibility, creativity, and an ability to problem solve to the relationship. An ideal franchisee is sales oriented, a people person, and adaptable. Charlwood’s advice to franchisees is, “Follow the program, don’t try to reinvent the wheel, and use the resources provided.”

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Coffee and Baked Goods Across Canada Between cups of joe, pastries, and fresh café fare, these franchises keep Canada running

The local café or coffee shop is an integral part of any Canadian community, and with the rise of specialty beverages and diets, there’s more opportunity than ever for prospective franchisees to find their niche and brew some success. The Canadian Franchise Association (CFA) member brands in the coffee and baked goods sector provide a range of opportunities for incoming franchisees. Some outlets offer seasonal, artisanal treats, while others rely on the classic coffeehouse fare. All of them offer an enticing opportunity for growth in an ever-popular market. See an opportunity that gets your beans percolating? Find more information on coffee and baked goods brands and other industries on LookforaFranchise.ca.

Franchise Canada January | February 2024

COFFEE AND BAKED GOODS ACROSS CANADA

BeaverTails® BeaverTails is a Canadian-based pastry brand specializing in hand-stretched fried dough pastries. Shaped like a beaver’s tail, these treats are topped with a variety of sweet flavours like cinnamon sugar, chocolate hazelnut, and fruit. A popular choice for a comforting, indulgent snack, BeaverTails® pastry are an iconic Canadian favourite. ®

Investing in a BeaverTails® franchise offers a chance to join an iconic Canadian brand. The established market presence, proven business model, and beloved product make it an enticing opportunity for entrepreneurs seeking a recognized food franchise.

Learn more at LookforaFranchise.ca

Bimbo Canada/ Canada Bread Company Ltd. Bimbo is Canada’s largest and oldest bakery; it has been feeding Canadians delicious and nutritious food for more than 110 years. Known for its commitment to quality and diverse bakery offerings, it serves as a staple in Canadian households and businesses. Investing in a Bimbo Canada franchise offers the opportunity to join a well-established, globally recognized bakery brand with a solid reputation for quality and innovation. The extensive support, established market presence, and diverse product offerings make it an appealing prospect for potential franchisees seeking a proven concept in the food sector.

Learn more at LookforaFranchise.ca

Broyé Café & Bakery

Caffe Artigiano

Broyé Café & Bakery combines Japanese and Vietnamese treats and flavours. Specializing in freshly brewed coffee and delectable baked goods, it offers a cozy ambiance for customers to enjoy artisanal beverages and a variety of pastries, catering to those seeking a culinary fusion experience.

Caffe Artigiano is an upscale coffeehouse renowned for its artisanal approach to coffee. Focused on quality and craftsmanship, it offers meticulously prepared espressobased beverages using top-tier beans. With a sophisticated atmosphere and skilled baristas, it’s a destination for those seeking a refined, premium coffee experience.

With its focus on quality baked goods and an inviting café atmosphere, it offers a versatile and unique fusion concept. It appeals to those seeking a unique product offering in the food and beverage industry.

Learn more at LookforaFranchise.ca

Investing in a Caffe Artigiano franchise offers a chance to align with a premium coffee brand. The established brand reputation, emphasis on quality, and sophisticated coffee culture make it an appealing choice for entrepreneurs seeking an upscale entry into coffee industry.

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36 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

COFFEE AND BAKED GOODS ACROSS CANADA

Cinnaholic Franchising LLC Cinnaholic is a gourmet cinnamon roll bakery known for its entirely customizable and vegan cinnamon rolls. With a focus on fresh, high-quality ingredients, customers can choose from various frostings and toppings, creating unique and indulgent treats. In addition, all Cinnaholic products are 100 per cent dairy- and lactose-free, egg-free, and cholesterol-free. A popular choice for those seeking vegan-friendly, sweet delights. Investing in a Cinnaholic franchise offers the opportunity to be part of a successful and innovative brand. The rising demand for quality vegan treats and the unique, customizable concept make it an attractive choice for entrepreneurs seeking a niche in the bakery and dessert market.

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COBS Bread COBS Bread, a leading bakery chain in Canada and Australia, specializes in fresh, artisanal bread. Using high-quality ingredients and traditional baking techniques, it offers a wide variety of bread, buns, pastries, and sweet treats baked daily on-site. With a commitment to quality and community, it’s a go-to destination for freshly baked goods. Investing in a COBS franchise provides a chance to join a renowned bakery chain with a commitment to baking fresh, high-quality bread and pastries daily. With a proven business model, strong support systems, and a focus on community, it offers an appealing opportunity for entrepreneurs seeking a successful bakery franchise with a well-established reputation.

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Chocolato Chocolato is a delectable destination renowned for its pure chocolate dips and indulgent desserts. With a concept blending premium quality ingredients and innovative recipes, it offers a diverse sweet menu catering to diverse tastes. The franchise is attractive to potential franchisees because of its proven business model, comprehensive support system, and a robust brand identity. A Chocolato franchise combines the timeless allure of chocolate with an exciting business opportunity in the thriving confectionery industry.

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Coffee Culture Café & Eatery Coffee Culture Café & Eatery is a vibrant, cozy haven for coffee and food lovers alike. Embracing a fusion of artisanal coffee craft and delectable culinary offerings, this inviting space embodies community, offering a place to savour freshly brewed coffees, try gourmet bites, and foster connections in a warm, relaxed atmosphere. With a welcoming ambiance, established brand recognition, and a menu of breakfast and lunch options, Coffee Culture Café & Eatery presents an appealing opportunity for prospective franchisees who want to enter the café and restaurant industry.

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Franchise Canada January | February 2024

COFFEE AND BAKED GOODS ACROSS CANADA

Coffee Time

Debrodniks Donuts

Coffee Time is a straightforward café catering to quick coffee needs. Focused on efficiency, it provides a no-fuss environment for customers seeking a caffeine fix. Offering a variety of coffee selections and baked goods, it’s designed for a convenient coffee experience.

Debrodniks Donuts is a celebrated donut destination crafting innovative, handcrafted treats. Known for its unique flavours and made-from-scratch recipes, the shop offers a diverse selection of freshly made donuts. Embracing creativity and quality, it’s a go-to spot for donut enthusiasts seeking distinct, flavourful creations.

Coffee Time is an all-Canadian success story that got its start in Bolton, Ontario. Since its inception in 1982, the focus of Coffee Time has been on its customers, products, and business partners. As a result, it has grown within Canada and around the globe. Coffee Time offers a robust franchise system to prepare each new franchisee for success including site selection and lease negotiation, business/restaurant training program, marketing support, research and development, and much more.

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Franchisees benefit from comprehensive training, ongoing support, and a well-established brand, enabling them to capitalize on a successful business model within the thriving gourmet donut industry.

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Duck Donuts

Eggless Cake Shop

Duck Donuts is a made-to-order donut chain specializing in customizable, freshly prepared donuts, coffee, and ice cream treats. Customers personalize their donuts with various coatings, toppings, and drizzles, ensuring a unique experience. With a focus on customization and quality, it offers a fun and individualized approach to baked goods.

Eggless Cake Shop specializes in crafting a diverse range of cakes, pastries, and desserts without the use of eggs. Catering to vegans, individuals with dietary restrictions, or those preferring egg-free options, it offers delicious baked goods using alternative ingredients to create tasty treats suitable for various preferences and dietary needs.

Duck Donuts franchisees receive hands-on training and ongoing support from an internationally recognized brand, empowering them to thrive in the specialty donut industry with a proven business model.

Investing in an Eggless Cake Shop franchise presents a unique opportunity to cater to a specialized market segment with dietary restrictions, tapping into the increasing demand for eggless baked goods and serving a growing customer base. With a recognized brand, specialized product offerings, and comprehensive support, buying this franchise allows entrepreneurs to enter a niche market and capitalize on the rising interest in allergen- and dietary restriction-friendly desserts.

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38 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

COFFEE AND BAKED GOODS ACROSS CANADA

Good Earth Coffeehouse

Heavenly Desserts

Good Earth Coffeehouse offers a community-minded approach to the artisanal coffee experience. While emphasizing sustainability, it serves ethically sourced coffee in a warm, inviting atmosphere. The menu includes a diversity of hot and cold drinks, including espresso and tea-based beverages, smoothies, and frappes. The wholesome food includes sandwiches and wraps, soups and stews, hot breakfasts, and fresh baked goods, all catering to people seeking quality and comfort.

Heavenly Desserts restaurants serve luxurious treats such as cakes, pastries, and gelato, as well as innovative dessert creations. The concept revolves around providing heavenly, high-quality desserts to satisfy cravings and preferences, with a focus on premium ingredients and delightful presentation.

Investing in a Good Earth Coffeehouse franchise means joining a brand that stands out for its commitment to sustainability, offering ethically sourced coffee and wholesome food that resonates with environmentally conscious consumers, thereby attracting a loyal customer base. Franchisees gain access to a well-established business model, comprehensive training, ongoing support, and a vibrant menu innovation program, strategically positioning them in the competitive coffee market and contributing to a sustainable and ethical business ethos.

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Kekuli Café Indigenous Cuisine Kekuli Café Indigenous Cuisine is a unique culinary destination celebrating Indigenous flavours and culture. Offering a diverse menu featuring bannock-based dishes, fusion cuisine, and traditional Indigenous flavours, the brand honours heritage through food. With a welcoming ambiance and a focus on authentic, Indigenous-inspired recipes, it’s a cultural and culinary experience. Franchising with Kekuli Café Indigenous Cuisine provides an opportunity to be part of a unique brand that celebrates Indigenous cuisine, attracting customers interested in experiencing authentic Indigenous food and culture. The proven business model, comprehensive training, ongoing support, and menu featuring traditional Indigenous dishes allow franchisees to tap into a niche market.

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Franchisees get access to a proven business model, extensive training, ongoing support, and a well-established brand image, allowing them to maximize the popularity of desserts while operating within a structured system to help them succeed in the competitive dessert market.

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Lee’s Donuts Lee’s Donuts is a legendary, family-owned donut shop. The original location is situated in Vancouver’s Granville Island Public Market and is renowned for its fresh, handcrafted donuts. With a legacy spanning decades, Lee’s specializes in a variety of classic and innovative flavours, drawing locals and tourists seeking delicious, traditional donuts made with care and expertise. Franchising with Lee’s Donuts means receiving access to a well-established brand known for its delicious donuts, attracting a loyal customer base. Franchisees benefit from a proven business model, training, and ongoing support.

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Franchise Canada January | February 2024

COFFEE AND BAKED GOODS ACROSS CANADA

Maverick’s Donuts

Robin’s Donuts

Maverick’s Donuts is a trendy, artisanal donut shop redefining the classic treat. Known for its inventive flavours and unique twists on traditional recipes, it offers a diverse range of freshly made, gourmet donuts. Combining quality ingredients with creative expertise, it’s an increasingly popular destination for donut lovers seeking high-quality, artisanal treats.

Robin’s Donuts is a Canadian chain known for its fresh coffee and a variety of baked goods. With a focus on quick service, it stands out for its range of specialty donuts, breakfast sandwiches, and hot beverages. Providing a convenient and satisfying experience, it caters to those seeking tasty treats and light meals on the go.

Maverick’s Donuts franchisees gain access to an experienced team of trainers, operations, and franchise specialists from a growing brand.

Owning a Robin’s Donuts franchise offers the advantage of being part of a well-established Canadian brand, with a recognizable and trusted name. The brand also offers an express model situated within gas stations and attached to high-traffic areas. Additionally, the support and resources provided by the franchisor include operations support and access to proven business strategies.

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Scooter’s Coffee

Serious Coffee

Scooter’s Coffee is a drive-thru-centred café chain focusing on convenience and quality. Focusing on specialty coffee drinks, it caters to on-the-go clientele. Known for its signature blends and quick service, it offers a range of beverages and light snacks, ideal for those seeking a swift caffeine fix.

Serious Coffee is a coffeehouse renowned for its dedication to serving only premium-quality brews. Focused on the art of coffee making, it sources top-grade beans from Mexico, Kenya, Colombia, and Ecuador and offers a range of meticulously crafted beverages. With a cozy ambiance and expert baristas, it’s a go-to destination for coffee connoisseurs seeking exceptional flavours.

Owning a Scooter’s Coffee franchise offers the advantage of tapping into a rapidly growing and popular coffee and donut brand. Additionally, the franchise provides comprehensive training, ongoing support, and a diverse menu that includes quality coffee and freshly made donuts.

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Serious Coffee franchisees have the advantage of being part of a locally recognized brand known for its commitment to quality coffee and a welcoming atmosphere. Additionally, franchisees benefit from the brand’s focus on community engagement, allowing for the cultivation of loyal customers and a strong sense of belonging within the neighbourhood or region.

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40 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

COFFEE AND BAKED GOODS ACROSS CANADA

Second Cup Café

The Fritter Shop

Second Cup Café is a Canadian coffeehouse brand boasting delicious coffee and an inviting atmosphere. Offering a wide range of specialty drinks, pastries, and light meals, it focuses on quality and consistency. With cozy interiors and a commitment to sustainability, it provides a welcoming space for coffee aficionados and casual customers alike.

The Fritter Shop is a specialty bakery known for its handcrafted, gourmet fritters. With a dedication to quality and flavour, it offers a variety of sweet and savoury fritters, made fresh daily using traditional recipes and high-quality ingredients. A destination for anyone seeking unique, delicious pastries.

Owning a Second Cup franchise offers the advantage of aligning with a well-established Canadian coffee brand known for its premium coffee blends and diverse menu options. Franchise owners benefit from the company’s strong brand recognition, marketing support, and a focus on sustainable practices.

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Owning a Fritter Shop franchise provides the advantage of specializing in a niche market, offering freshly made, highquality fritters that can attract a dedicated customer base seeking a distinctive pastry experience. Additionally, the franchise model often includes streamlined operations and standardized recipes, enabling owners to focus on delivering exceptional products while benefiting from established brand recognition.

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Tim Hortons

Industry Facts for 2024

Tim Hortons is a globally recognized Canadian coffee and fastfood restaurant chain. Renowned for its coffee, donuts, and Timbits, it offers a diverse menu of breakfast, lunch, and snack items. Focused on quick service and convenience, it serves as a beloved stop for quality coffee and classic Canadian comfort food.

The demand for specialty coffee is on the rise, with consumers seeking unique, high-quality beans from local roasters.

Owning a Tim Hortons franchise offers the advantage of being part of an iconic Canadian brand with international recognition and a loyal customer base, providing a strong foundation for business success. Additionally, franchise owners benefit from comprehensive support, including marketing assistance, operational guidance, and access to a well-established supply chain, facilitating smooth operations.

Canadian consumers are looking for natural, organic, and premium coffee and baked goods. Artisanal products are expected to grow by two per cent yearly through 2027. Health-conscious consumers looking for gluten-free products are expected to drive growth in this sector by 4.4 per cent, year over year. Franchisees can benefit in this industry by partnering with a brand that specializes in the classics that Canadians know and love!

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Franchise Canada January | February 2024

10 Things to Look for in a Franchisor The franchisor-franchisee relationship is crucial, and these key considerations can help foster franchise success

hen you apply for a franchise, you should expect that the franchisor will put that application under a microscope. That’s because good franchisors complete significant due diligence on their candidates to make sure that awarding a franchise would be in the best interest of everyone involved. This helps to ensure prospective franchisees are a good fit and they have the right disposition and the finances available to take the leap. While the franchisor carefully analyzes its prospective franchisees, you should also be performing the same level of due diligence about the franchisor you’re considering. You need to ensure you’re entering a franchise system that meets your specific business goals, aptitudes, and interests. Here are some things you should be on the lookout for as you investigate the franchise opportunity. 1. A reliable franchise concept Franchising is all about consistency. The ability of franchise systems to replicate the success of the concept throughout dozens, hundreds, and even thousands of locations (potentially globally) is one of the biggest strengths of the business model. Here are some key questions franchisees should ask about a franchise’s replicability:

• How many locations are there? • If it’s a start-up franchise system with a few locations, can the concept be replicated in new markets? • What kind of market would the franchise be successful in? • How many locations have failed? Why? • How similar are the existing franchised businesses in the system? Is the brand consistent across locations? 2. A strong franchise brand There are dozens of quick service franchise systems serving hamburgers across Canada, but a solid brand concept and established reputation can help a quick service burger franchise system stand out from the pack. Here are some key questions to ask about the franchise brand and concept to determine what makes it stand out from the competition: • Does the franchise have protected trademarks (name, logos)? • Does it have name recognition? • W hat’s the reputation/public opinion of the franchise? Is there negative feedback on social media? • How many corporate stores are there? Can customers tell the difference between a corporate store and a franchised store?

42 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

10 THINGS TO LOOK FOR IN A FRANCHISOR • Is the franchise financially healthy? • If it’s a newer concept, what is the franchisor doing to differentiate the brand from the competition? Is it enough to stand out? 3. Consistent franchise operations Franchisors create consistency across all the franchises in a system through the operating standards and procedures documented in the operations manuals. The system, suppliers, and training are all designed to create a consistent experience for customers while setting expectations for franchisees. As a prospective franchisee you should thoroughly review the franchisor’s operations manuals before signing a franchise agreement. If the franchise doesn’t have an operations manual, or won’t let you to review its contents before signing, this might be a red flag. 4. A supportive management team Franchises are often backed by a strong corporate management team that provides support to help the business thrive. The franchisor’s management team of professionals should be dedicated to the success of the system— which means supporting franchisee success. Some key questions to ask about the support for franchisees include: • How involved is the franchisor in the day-to-day operations of the franchise? • W hat support does the franchisee receive? If the franchisee has questions, how do they get answers (phone call, email, web portal, etc.)? • How dependent is the system on its founder? • What are the founder’s long-term plans for the franchise? • Is there a private equity investor? If so, what is its role in management? And what are its short-term/longterm interests in the system? 5. Comprehensive franchisee training Typically, franchisee training occurs at the franchisor’s corporate office or at an existing franchised location. Again, training ensures the franchise’s consistency across all its units. It helps to make sure all franchisees are on the same page and includes key training areas such as site selection, operating standards, recruitment, and marketing. Before signing on the dotted line, franchisees should review the disclosure document for more information about training, and should go over questions such as: • W hat type of training do franchisees receive (online, in-person, on-site, etc.)? • W hat’s covered in the training program and how long is it? • Who must attend training? • Is there an additional cost for initial training? • Who conducts the training? • W hat happens if the prospect doesn’t successfully complete the program? How often does that occur?

6. A smooth site selection process When it comes to brick-and-mortar franchise concepts, location is critical; the location of a franchise can make or break its success. Each franchisor handles site selection differently. Some franchisors leave it to their franchisees, while others take complete control over the process. Prospective franchisees should ask the franchisor how involved they’ll be in the site selection process. They should also ask key questions regarding territory, and development of the location. You should also find out what kind of lease the franchisor will hold. Is it a head lease? If not, you’ll have to find out how and whether it will exert any other form of land control to ensure it maintains an interest in the location if the franchisee fails. 7. A healthy supply chain A franchise system’s supply chain is what keeps it running. It’s what fills the shelves of a retail store or keeps fresh ingredients in stock to feed hungry customers ordering off a menu. Like site selection, supply chain management within a franchise system varies from franchisor to franchisor. Prospective franchisees should find out what their role will be when it comes to the supply chain. You should ask questions such as: • Is the franchisee required to purchase all equipment, products, and related accessories and supplies from the franchisor? • How are the products distributed? • How long does it take for orders to be filled? • Does the franchise offer discounts for bulk orders? 8. Marketing programs and support Without basic marketing, consumers won’t learn about a franchise’s products or services. In franchising, the marketing program is often laid out in the franchise brand standards manual and other operational and legal documents. Prospective franchisees will want to understand: • Has the franchisor established a national or regional marketing program? • Is there a requirement for the franchisor to report on the use of advertising funds generated from the franchisees? • To what extent do franchisees benefit from the fund compared to one another? • Is the franchisee required to do local advertising? How does that work? 9. What are the terms of the franchise agreement? The franchise agreement should lay out, in clear terms, the rights and responsibilities of both the franchisor and franchisee. You can’t expect everything to balance in favour of the franchisee, but some agreements are more one-sided than others.

Franchise Canada January | February 2024

Some key issues franchisees should note: • Are parts of the agreement negotiable? • What is the initial franchise fee? • What is the initial term? • A re there any conditions of renewal (e.g., will the franchisee have to spend a lot to renovate to renew)? • Does the franchisor retain the right to change the agreement at any point? • W hat rights has the franchisor reserved for itself while granting this franchise? Is there an exclusive territory? • Are there minimum performance standards? • How much will the franchisor receive in ad fund fees, technology fees, additional training fees, and other royalties? • Does the agreement have a reasonable process for addressing disputes? • W hat happens in the event of a default/termination? What are the rights to transfer the business? 10. Is it a good lifestyle fit? Ultimately, the decision to invest in a franchise is driven by a desire to be one’s own boss while running a business that has a proven track record or serious prospects of success. Not every franchise works with everyone’s preferred lifestyle, so here are some questions to help you decide if the franchise works for you: • W hat does the day-to-day life of owning this franchise look like? • W hat type of work will the business require? Is it physical? Is it customer-facing? • What are the expected working hours? • Can you do the job from home, or do you need to go to the location every day? When franchisees invest in a franchise, they’re not just investing money and taking on financial risk; they’re also investing time, passion, and hard work. With the amount of resources that franchisees devote to a franchised business, they should get a full picture of the franchise opportunity before they sign. Documents like the Franchise Disclosure Document will hopefully answer some of the questions above, but speaking to existing and former franchisees, reading online reviews, seeking the advice of experienced legal and financial advisors, and even just visiting franchised locations in person will provide a clear picture of the franchise system. After reviewing all the documents and going through these questions, you should have a pretty good idea of what you’re getting yourself into and the quality of the franchise systems you’re considering. Remember, there are plenty of systems to choose from, so don’t settle for anything less than a great franchise fit.

44 Canadian Franchise Association

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HOME-GROWN & LOCALLY-OWNED

100% CANADIAN FRANCHISE SYSTEMS

Trends come and go, but classics live on. These three brands demonstrate why some long-standing franchise systems are still prospering. BY DAVID CHILTON SAGGERS

Au Pain Doré

The Au Pain Doré bakery brand began in 1956 in Montreal and was acquired by Le Duff Group Canada in 2008. After the acquisition, Le Duff Group began to franchise the bakery, first in Montreal in 2017 and then in Toronto in 2022. In Montreal there are eight stores, seven of them corporate and one franchised. In Toronto there’s one corporate store and seven franchises. Alexandra Grudkin, franchise development director for Le Duff Group, says the system wants to expand in Montreal and in its immediate suburbs, and in Toronto the focus is on the downtown core and the Greater Toronto Area. But Au Pain Doré is piquing interest in other cities as well. “We’ve had a lot of interest from B.C.,” says Grudkin from her office in Toronto. Le Duff Group chose to go the multiple unit ownership route from the beginning. “That means people who are looking to invest but not necessarily be there [in the stores] day to day,” says Grudkin. When considering potential investors, she looks for people who are passionate about the brand and the concept, have leadership and marketing skills, and are open to franchisor feedback.

Grudkin says the sweet spot for a store is between 1,200 and 2,000 square feet, preferably with a patio, and found at street level or in high-end malls. A single turnkey franchise costs between $350,000 and $600,000, depending on the site. Training runs for five weeks at a corporate store and there’s one week’s in-store support after that. Grudkin says Au Pain Doré generally targets millennials with its pastries, quiches, sandwiches, and soups, although the brand attracts customers of all sorts. As for the benefits of investing with Au Pain Doré, Grudkin says it’s an established Canadian brand with a proven business model, its fees are among the lowest in the category, and it has its own network that supplies its franchises with baked goods/bread products. Furthermore, Au Pain Doré stores escaped the worst of the COVID-19 pandemic, says Grudkin, noting the brand opened up to delivery platforms such as Uber.

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Franchise Canada January | February 2024

Bimbo Canada

Bimbo Canada is Canada’s largest and oldest bakery, with operations across the country. It has more than 1,000 franchises and distributorships to its name. But they’re not franchises in the traditional sense; they’re delivery routes with most deliveries carried out by fiveton trucks to retailers, quick service restaurants, institutions such as hospitals, and independent restaurants. Each franchise has a mixture of retail and institutional customers on its delivery route. Brian McReynolds, senior director of national network development at Bimbo Canada, says potential investors need an entrepreneurial spirit, grocery experience, direct store delivery exposure, strong sales skills, and an equally strong customer service background. Bimbo Canada franchisees come from all sectors of the economy, with most franchise sales being resales of existing franchises to new franchisees. The cost of a franchise varies from approximately $100,000 to several times that amount. Training and certification take three weeks, generally in the districts where investors will have their routes. Franchisees will also need to learn to drive at least a one-ton truck and have to frequently lift up to 30 pounds.

As for expansion, McReynolds says, “It’s demand based. We’re always looking for opportunities to grow.” Bimbo Canada has franchises in every province and in two of Canada’s three territories—Nunavut is the exception. The company was formerly Canada Bread, formed in 1911, and acquired by Mexico’s Grupo Bimbo in 2014. The benefits of investing with Bimbo Canada are many, McReynolds says. There’s the sheer size of the company; it has more than 1,000 products across 18 brands such as Dempster’s®, Villaggio ®, POM®, Bon Matin®, Ben’s®, Stonemill®, Takis®, Natural Bakery ®, and Vachon® in its portfolio. Also, McReynolds continues, Bimbo Canada will consider investors who are interested in both single and multi-unit acquisitions, and the company has an inhouse financing program.

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46 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Rôtisseries Benny

Rôtisseries Benny built a solid reputation over the last six decades, thanks to the quality of its chicken. Started by the Benny family in Montreal in 1960, Rôtisseries Benny has been owned by Foodtastic since 2016. Alexandre Joly, brand leader for Rôtisseries Benny, says there are 11 stores in the areas surrounding Montreal at the moment, and looking ahead, Foodtastic wants to add 30 more, with some of the growth coming from converting Rôtisseries Au Coq locations to the Rôtisseries Benny brand. For the time being, however, the system’s expansion will be close to home, with the brand looking to open stores in Ontario and the Maritimes. All stores have the same look and feel, with bright, eye-catching branding. All include a large exterior image of a stylized chicken. And the chicken imagery doesn’t stop there: with Rôtisseries Benny vehicles featuring a large chicken figure on their roof, they’re extremely visible in the neighborhoods surrounding each store as they make their deliveries each day. The restaurants’ traditional target has been families and the brand’s name was also well known among its older customers in Montreal. “We were on speed dial!” says Joly. These days, however, Rôtisseries Benny wants to skew towards a younger market segment with online and mobile ordering and interactive in-store zero-contact kiosks. One thing won’t change, though, and that’s the

chicken. Joly says 50 per cent of sales are chicken-based, whether legs, breasts, wings, or sandwiches. Poutine makes up another 25 per cent and the rest comes from items like ribs and salads. An average cheque is around $22. About 65 per cent of sales come from delivery and about 35 per cent are from counter pickup. It was delivery that kept Rôtisseries Benny in the game during the pandemic, as people were concerned about going outside. As a result, not one store closed and many stores saw an increase in business, says Joly. As for what he looks for in a potential investor, Joly says he wants owner-operators who are familiar with the concept, will invest in marketing, and have some experience. Stores are open from 11 a.m. to 10 p.m. for lunch and dinner. None of them sell alcohol. Among the benefits of investing in Rôtisseries Benny are the brand’s high profile, ease of operation, and low staff requirements. Then there’s the chicken. It’s cooked for two hours in a proprietary rotisserie oven, says Joly. “And Quebeckers really like rotisserie chicken.”

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Franchise Canada January | February 2024

NEXT GENERATION IN FRANCHISING

ALL IN THE FAMILY

Oxygen Yoga & Fitness franchisee Samantha Collins shares her 13-year journey with a brand that just feels like home BY STEFANIE UCCI

It may be hard to believe that Samantha Collins began her franchising journey with Oxygen Yoga & Fitness at just 16 years old, but it’s true! Operating as a dynamic duo with her mother Lori Collins, the pair are co-owners of two Oxygen Yoga & Fitness franchises in B.C. Now 29 years old, Samantha looks back at her long and fruitful franchise journey with pride at how far she’s come and what a difference her family franchise has made within their community in Western Canada.

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NEXT GENERATION IN FRANCHISING

“I FEEL THAT YOU HAVE TO BE ABLE TO PIVOT WITH YOUR BUSINESS AND THINK OUTSIDE OF THE BOX TO ACHIEVE SUCCESS.”

Lori and Samantha Collins, co-owners.

- Samantha Collins

Samantha and Lori own Oxygen Yoga & Fitness franchises in the Walnut Grove and Willoughby neighbourhoods of Langley, B.C. They began their family business just over 13 years ago and are proud to have been the first Oxygen Yoga & Fitness franchise in Canada. Today, they’re one of the brand’s top performing locations and are only growing stronger! “The concept of Oxygen Yoga & Fitness is founded on a strong foundation of community and like-minded individuals,” explains Samantha. “When you step into a franchise, there’s so much value and I think that that’s why our business has grown so well, because there’s incredible potential with the concept of yoga, fitness and farinfrared heat.” Oxygen Yoga & Fitness offers modern, fusion-style yoga and fitness classes, within a supportive and warm community of members who Samantha calls her “Yogi Family.” The brand was founded by CEO Jen Hamilton in 2010 and has since grown to more than 110 locations sold internationally. Stretch outside your comfort zone Lori acts as the owner of both studios, and largely takes care of accounting and paying bills—making sure instructors and staff are paid and all invoices are taken care of. As for Samantha, she holds the role of CEO, and her responsibilities cover a wide range of duties. From operations and marketing to sales and the management and training of employees, every day is special and exciting for the millennial business owner.

Samantha’s typical day includes managing the studios’ social media; keeping up with customer service texts, emails, and phone calls; sales calls; and teaching classes at the studio a couple of days a week. And she still finds a bit of time for personal tasks like working out, going for dinner with her boyfriend, and walking her dogs. “All that I do and all that I know is working,” says Samantha with a laugh. She, like many franchise owners, admits that being an entrepreneur wasn’t originally in her life plans. “I was initially going to school to become a registered nurse. At the same time, I was also taking the first ever Oxygen Yoga & Fitness teacher training,” Samantha explains. “I started off becoming a certified yoga and fitness instructor and then my mom, who took her teacher training through a different group of franchises, said, ‘I want to do this—I want to open a studio.’” With the support of CEO Jen Hamilton, Lori opened Oxygen Yoga & Fitness’s first franchised location. Samantha flipped her career plans upside down and opted for franchising, and so the family business was born. The two began with opening the Walnut Grove location in 2010 and, after experiencing success and building up

Franchise Canada January | February 2024

NEXT GENERATION IN FRANCHISING That hard work Samantha mentioned? It sure has paid off for this family franchise. “We’ve remained one of the top performing locations in all of the network for sales and growth because we’re continuously pivoting through the business. For example, through the pandemic, I pivoted and created an entire online platform for my community because I knew I had to continue providing a service to our members…I feel that you have to be able to pivot with your business and think outside of the box to achieve success.” Despite the fact that their Walnut Grove and Willoughby locations are a five-minute drive from each other, Samantha adds that how she and Lori run their businesses is completely different—because it’s dependent on the demographic of members and employees that are part of each studio. “The day-to-day responsibilities and the discipline of hiring instructors to make sure we have a high standard of instruction at each of our franchises is something that we take great pride in,” she says. And when it comes to both of their locations, it’s about “knowing that we’re creating such a safe space. Making an impact is something I’ll never take for granted.”

a waitlist of customers eager to get in the doors, they opened the Willoughby location in 2017. Samantha emphasizes that neither she nor her mom had previous business experience and they take great pride in how they developed their skills on their own. Owning a franchise is all about being flexible To say owning a franchise is hard work would be an understatement for Samantha, as she lives and breathes entrepreneurship. “Being with the company for 13 years, I have [experienced] my ebbs and flows, and I’ve encountered many opportunities, as I like to call them—never ‘problems’— that come up when it comes to the growth of our business,” says Samantha. She adds, “For people looking into franchising, and this franchise in particular, you have to work. This business works if you work it. It’s not just a one-size-fits-all franchise structure. While the policies and procedures are great and are an awesome foundation, you really need to have a business mind to be able to gauge and change with what your community, members, and team needs.” Samantha explains that many of her former members are now fellow franchisees—guests who saw how successful the Collins’ family business was and how much of a community environment they nurtured. For the mother-daughter duo, it’s the ultimate compliment that their own members went on to open up their own Oxygen Yoga & Fitness franchise.

Yoga-na do great things When it comes to advice for fellow young people looking to get into franchising, Samantha is filled with passion, excitement, and wisdom gained from experience. “The biggest thing that has gotten me to where I am is being okay with sacrifice,” she explains. “Think about if you can miss those nights out for dinner with your friends and family or date nights downtown, and if you can sacrifice temporarily while you’re in a growth season as a business owner. Can you sacrifice missing out on those times, and are you able to put yourself and your needs, vision, and goals ahead of everything else around you temporarily so you can get to where you want to be? That’s the biggest thing to consider.” At the end of the day, Samantha adds, “your ‘why’ has to be very strong because life’s going to happen, people are going to say things, someone’s always going to comment on social media. There’s so much noise at this age as a young entrepreneur. “If you can be unshakeable and never turn away from your ‘why,’ then that’s going to benefit you in the future success of your business. Because you decided to do what no one else was doing.”

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LEADERSHIP PROFILE

FROM THE RUGBY PITCH TO THE BOARDROOM MOLLY MAID president and CEO Aaron Abrams goes from tackling the competition to tackling a cleaning empire BY ROMA IHNATOWYCZ

t’s fair to say that Aaron Abrams’ career trajectory falls outside the norm: he went from the world of professional sports, competing on Canada’s national rugby team, to an executive career with MOLLY MAID Canada, where he now runs the residential cleaning franchise as its president and CEO. To call it a career switch would be an understatement. “As a child, I aspired to be one of two things: a professional athlete or whatever my dad did. The problem was I didn’t know what my dad did, so I pursued sport!” says Abrams with a laugh, adding that he had always had a “massive passion for sport.” In his professional rugby days, he says, “I was the hooker. If you can picture a rugby scrum, I was the sucker right in the middle of that. My job was to hook the ball back with my foot.” It’s one of the most dangerous positions to play in the high-contact sport, but that wasn’t what eventually drew the MOLLY MAID CEO away from the rugby pitch to the safer shores—physically, at least—of franchising. His interest in pursuing a more professional executive role was already brewing at the height of his athletic career. “The one thing that I missed as an athlete was the intellectual stimulation,” says Abrams. “It was there, but just not in the same quantity that I wanted it to be. I wanted to get on with my life, to have a career and a challenge that was more than just physical.”

Franchise Canada January | February 2024

LEADERSHIP PROFILE

With rugby’s four-year global competition cycles and five-day rest periods between matches, Abrams had time to pursue a side job working for the Canadian Rugby Foundation, a not-for-profit group promoting rugby across Canada. He eventually headed up the charity as its executive director. That role led him to a chance encounter with MOLLY MAID chairman Jim MacKenzie, who in 2008 invited him to apply for an opening at the franchise as its director of business development. The offer couldn’t have been better timed: Abrams was ready to move on from professional sports, and the idea of working for a franchise-based business was a huge draw. “I loved small business,” he says. “I was extremely entrepreneurial in my younger days. I had my first job when I was just seven years old—cutting grass, shovelling driveways, and setting up lemonade and KoolAid stands. Franchises are essentially a collection of small businesses, and what appealed to me was having the opportunity to work with them and influence both the results and the people.” In his university years, Abrams also worked for CocaCola and, during a brief time living in Australia, for American Express. But these experiences confirmed that working with behemoth brands simply wasn’t the right fit for him. “The one thing I didn’t like about big business was the limitations on being able to influence results and influence people. Franchising appealed to me because it would give me that opportunity.” A historic cleaning brand Abrams wasn’t joining just any franchise—MOLLY MAID is one of Canada’s oldest cleaning franchises and a readily recognized brand with its famous pink and navy branding. It was launched in 1979 by a forward-thinking

husband-and-wife team who saw a new market need arising from women entering the workforce. They set out to provide the services women historically fulfilled in the home—ironing, laundry, cleaning, etc.—before narrowing it down to just cleaning. It was a pioneering concept that has grown in presence over the years. Today, there are around 600 MOLLY MAID franchises in five countries, including the U.K., Portugal, and Japan. In Canada, there are 80 franchises servicing more than 500 cities and towns in most provinces and one territory. Joining such a recognized brand with a strong history certainly put Abrams to the test, but the competitor in him was up for the challenge. “I’m an extremely disciplined person,” he says. “It’s easy to set a goal, define an objective, or clarify a target, but to achieve that, you really have to be disciplined in your execution and in everything you do. I’ve transferred a lot of those skills over as an athlete. It’s about achieving the highest level of play.” Abrams set to work, eventually rising in the ranks at MOLLY MAID to VP and general manager, and then, in 2015, president and CEO. His key achievements include launching the company’s digital marketing efforts, which prior to his arrival had been limited, at best. “We were very traditional in our marketing format at the time, so I launched us into search engine marketing and optimization.” With equal determination Abrams rolled out the company’s Green Housekeeping Program, which saw it transition to its own brand of renewable, largely plantbased cleaning products sourced from a green cleaning technology company. “We’ve been using these products for over 15 years now,” says Abrams. “They’re great for the environment, but they’re also great for our cleaning teams and our clients. We’ve never looked back once.”

52 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

LEADERSHIP PROFILE

Post-pandemic boon While the pandemic proved challenging, with MOLLY MAID operations in some jurisdictions closing down for weeks, the post-pandemic period has been a boon. “People had this new sense of cleanliness, so demand for our services shot through the roof,” says Abrams. “This gave us an opportunity to reassess our business.” In particular, the company decided to expand its franchise deeper into smaller towns and communities. With the rise of remote work, combined with the high living costs in major cities, there has been an exodus of people moving to rural locations. And with that migration to more affordable locations comes more flexible budgets that can include things like in-home cleaning services. MOLLY MAID is now targeting smaller markets with its new Neighbourhood Franchise model—a more compact business model where the franchisee is both business owner/operator and cleaner. While the brand built up a strong presence in mid-size and large markets over the years, its decision to actively move into rural locales is a recent development. “For us, it’s like going back to our roots because that’s exactly how the company started franchising back in 1980,” says Abrams. “Our other business model, what we call our Traditional Franchise format, is when somebody is the owner/operator only and in a management role. If you’re starting a franchise with us now, you’ve got either of those two options.” For interested franchisees, Abrams makes one thing very clear: “We don’t look for skills. We look for attitude.” What’s key is having a passion for the business and its people-based service. “This is a people-intensive business, so if you’re not a people person, and you don’t love leading people, then it’s not the right busi-

ness for you,” he says. “The advice I always give is ‘Do your research and look for fit.’ There are so many wonderful franchise opportunities, and you’ve got to find your right fit among them. Otherwise, you’ll get into the business and, one or two years later, when your passion should be driving you, instead you’ll be thinking: ‘I chose the wrong industry.” Clearly, Abrams is one to follow his own advice: with MOLLY MAID, the former professional athlete has found his perfect fit. While his early rugby career gave him some incredible experiences and valuable life skills, Abrams is confident he made the right professional decision to move on. He is grateful for the opportunities he now has leading one of Canada’s most recognized franchise brands into even more success in the future—for him, it’s a true labour of love. “I love the positive impact that we have on so many lives. Our purpose is to create joy and comfort, and I enjoy having the ability to influence that,” says Abrams, adding, “And we have a passionate, dedicated team that loves winning. I love winning as well.” Abrams may no longer be competing on the rugby pitch, but a little bit of the athlete in him still remains. Lucky for MOLLY MAID, his winning attitude is being put to good use.

Learn more at LookforaFranchise.ca

Franchise Canada January | February 2024

A DAY IN THE LIFE

TRESSED FOR SUCCESS Successful Sola Salons franchisee Becky McDougall walks through a typical day at her Oshawa location BY KYM WOLFE

54 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

A DAY IN THE LIFE

or most people, Sola Salons is where you go when you need a hairstylist, massage therapist, esthetician, or other salon professional. But the franchisee who owns a Sola Salons location isn’t the one delivering those personal services. Instead, their typical day is spent providing support to the beauty professionals who are the public face of the business. In a typical day, a Sola Salons franchise owner will interact with entrepreneurs who operate in individual studios in their building, ensure the property is clean and well-maintained, spend time promoting and raising awareness of the Sola Salons brand, and engage in the administrative and financial oversight of the location to ensure its ongoing success. Sola Salons rents studio space to independent beauty professionals, enabling them to operate autonomously without the risk and overhead costs associated with opening a traditional salon. Each move-in-ready suite comes with high-end furnishings and the equipment that the beauty pro will need to provide their services. Since opening in Denver, Colorado in 2004, Sola has become a dominant brand in the salon suites category in the U.S., and is working to repeat its success in the Canadian salon landscape. Becky McDougall is co-owner of the Sola Salons franchise territory in Ontario’s Durham region, along with her husband and another couple. The four began pursuing Sola franchise ownership in 2019 and went to the head office in Denver in February 2020, hoping to make a final decision. Of course, those plans had to be postponed due to the pandemic, which had a huge impact on the salon industry. Last year the four were able to revisit their decision, and opened their Sola Salons location in Oshawa, Ontario, where McDougall is the lease manager and first point of contact for all the daily operations. A cutting-edge venture “This is a fairly new concept in Canada, but many hairstylists here are familiar with it because it’s very popular in the U.S.,” says McDougall. That familiarity was helpful in attracting tenants to the newly built 7,000-squarefoot space that houses 36 studios. Located in a plaza, the building has ample free parking and is close to shopping centres, restaurants, and coffee shops. During the first year, McDougall leased 20 of the turnkey private salons, and her goal this year is to fill the remaining suites and establish a waiting list. McDougall usually starts her day by dropping her children off at school, then works in her home office until mid-morning. Once she’s caught up on emails and administrative tasks, she heads to the Sola Salons building. “I love the buzz when you walk in on a busy day. Each salon has sliding glass doors, and most people keep them open. There’s a real feel of community here.”

On any given day McDougall may be meeting with the painter, handyman, or health and safety inspector prior to a move-in, or attending a ribbon cutting for a newly opened suite. She may take a potential tenant on a tour, or find herself with some unexpected free time due to a last-minute tour rescheduling. She may pop into different suites to stay connected with existing tenants, keeping an eye on cleanliness and maintenance of shared spaces— public bathrooms and shared hallways, plus a kitchen, break room, and laundry facilities that are available to the beauty professionals. Then there are social media posts to create and manage, and often evening phone calls to connect with potential studio tenants who work during the day. “Every day is different, but it’s a very flexible schedule,” says McDougall. As a mother of three, she appreciates that flexibility. Establishing and maintaining relationships with the various salon professionals is important, says McDougall, who cites good people skills as one of the key qualities of a successful Sola franchisee. “They should also be good with numbers and very systematized,” she says. “For example, I have a system I follow when I’m giving tours and doing follow-ups.” All hands on deck None of the four Durham region co-owners have salon experience, but they do have business experience. When they learned about Sola Salons, they liked the model, and when they started exploring the system, they were impressed with how generous the existing franchisees were in sharing information. They felt that the franchise had done the work to establish tried-andtrue methods, and they liked the support and tools that the company offered.

Franchise Canada January | February 2024

A DAY IN THE LIFE

When they decided to move forward and were looking for a location, Sola Salons headquarters provided salon density, population, and demographic information to help them identify an ideal spot. Now that they’re up and running, there’s a portal that enables a constant flow of messages and answers to questions. Additionally, there are monthly online meetings with other franchise owners, and both headquarters and other franchisees are always available to answer questions or to brainstorm. McDougall is impressed with the tools and resources that the brand provides to Sola Salons tenants. The company recently revamped its website as well as the Sola Pro app. That app is for tenants—they can edit the information on their webpage themselves, and take technical courses on a variety of topics, from running a business to keeping up with the latest trends in hairstyling. There’s an annual three-day convention for the “Sola-preneurs” across North America called Sola Sessions, where several hundred Sola beauty pros come together to participate in breakout sessions with industry experts. Here they learn about everything from industry trends to artistic techniques to business topics like crisis management, price strategy, marketing, and customer service. McDougall also offers educational sessions at the Oshawa location, bringing in speakers to help her tenants learn different aspects of managing and marketing their own salons. Tenants are often attracted by the prospect of having total control over their business. “They can set their own hours and have access to come and go whenever they choose, 24/7,” says McDougall. “It’s a little more expensive than renting a chair in a salon, but their space is their own, and it’s fully equipped with everything they

need, including cabinets, shelving, sinks, and chairs.” There’s also free Wi-Fi, a 24-hour security system, and video surveillance. “This is not for someone who is just starting out. They need to have an established clientele,” says McDougall, and that provides another benefit—the different professionals get to know each other and cross-refer clients. Durham region is large enough to support multiple Sola Salons locations, and McDougall and her partners have already started to look at other potential sites. While the initial investment for the build-out of the Oshawa space was higher than anticipated, she says they’re on track financially. The goal is to fill the remaining studios, open a second building, and eventually add a third. “It will take a few years, and we need to be patient. Anyone thinking of opening a Sola Salons needs to be aware that it is definitely a marathon, not a sprint,” she says. When the Oshawa building first opened, McDougall wasn’t sure what to expect. “I didn’t realize how fulfilling it would be to see these business owners invest in themselves and thrive. Most of them are women, and I feel like Sola Salons is empowering them and helping them to be successful,” she says. “We’ve already seen some of them expand and move into a larger studio space. We are definitely disrupting the traditional salon model, and in a good way.”

Learn more at LookforaFranchise.ca

56 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FIRST YEAR

Diving into a Pool Care Franchise Two colleagues-turned-franchisees share the details of their first year of Puddle Pool franchise ownership BY SUZANNE BOWNESS

ach Wilson and Jason Curry got to know each other over the years while working on various jobs in the swimming pool construction and renovation industry. They got along well, enjoyed the work, and eventually wondered if they could start their own business. But when they started to look into the possibilities, they discovered a business opportunity that would become key to their operation— joining a franchise. “We were initially looking to start up from scratch, and just through research, Puddle Pools came up in an ad,” recalls Wilson. “We set up a call with [franchisor] Mark [Amery], got to know him and his vision, and really liked what a franchise could offer. It removed the administrative burden; we liked the vision and values that came with Puddle Pools. It was a good fit for us.” In April 2023, they launched their business in Ottawa and have spent the year growing a healthy client base that they expect to expand in the next year. Puddle Pool Services serves residential and commercial pools (in hotels and condos) with services such as scheduled pool and hot tub cleaning, water testing, and renovation projects.

In the repair and renovation sphere, franchisees do everything from replacing pool liners to adding stairs, slides, and diving boards to adding fountains and other water features. They can even make a pool area spectacular through lighting, built-in sound, and customized pools (or a custom waterfall that flows into a custom pool, as Wilson recalls from one particularly posh project). The franchise differentiates itself through its brand image, customer service, and transparent pricing and reporting. Wilson says that this standardization was one of the elements that he and Curry liked best about the opportunity; he liked that Puddle had established a brand and also had a tidy look. “Image is huge in this business, and Puddle puts a lot of emphasis on being a clean-cut, organized company,” says Wilson. Unlike the stereotype of the overly easygoing pool boy who drops by on a whim, the Puddle team shows up dressed in uniform, drives clearly identifiable branded vehicles, and follows standardized procedures to offer a consistent service. Their Instagram page provides a window into this image, with photos featuring the franchise’s blue and yellow branding and cheery puffer fish logo. There are

Franchise Canada January | February 2024

THE FIRST YEAR

Before long, the co-owners had hired three technicians to deliver the day-to-day service in the field, while they focused on administration, sales, and doing site visits in preparation for quoting on new jobs. also a few before-and-after photos of pools that go from yucky green to clear blue to demonstrate the results of a good cleaning. The franchise website provides a sense of their service consistencies, noting that technicians are fully insured, that the service is guaranteed, and that they offer pricing packages that include all elements. For even greater transparency, customers get a digital report after each service detailing the chemicals used, results of water measurements, and more. Already enthusiastic about the franchise’s potential from their initial meetings with the franchisor, Wilson says that the 2.5 days of training followed by on-site training plus the “Puddle playbooks” furthered the impression that the franchise had an organized approach and solid system. Training covered everything from the customer relationship management software to sales and marketing, social media training, and documentation for dozens of service offerings, including almost 100 training videos. While Wilson came to Puddle Pools with five years of experience in pool construction and Curry with 10, Wilson says that the training alone would be enough for a newcomer to get started. “Absolutely you could get by without experience; it helps to a degree, but the training is impressive. Once you do a deep dive, the information is a true value-add and meant we ended up hitting the

ground running,” he says. He adds that the franchise is very hands-on, with weekly meetings with the franchisor and a monthly roundtable with all franchise owners to discuss topics like new products and services. Starting from the beginning, that preparation and support provided the boost the team needed. Wilson says they spent their first weeks and months establishing a social media presence and advertising with flyer and door hanger distribution in targeted neighbourhoods. They also did direct outreach to corporate clients. Having a marketing department with materials already prepared meant that they could get started quickly. Wilson says he and Curry were lucky to launch at pool-opening season, which meant that a flurry of business came their way initially with a lot of customers eager to get into their pools for the summer. Before long, the co-owners had hired three technicians to deliver the day-to-day service in the field, while they focused on administration, sales, and doing site visits in preparation for quoting on new jobs. As the partnership developed, the pair discovered their individual strengths and began to divide the work accordingly. They also handed off some scheduling elements to their senior technician. While Wilson says that some franchisees in the system act as owner-operators doing both the technical work and the business development, he and Curry are focused on growing the business at this point. A year-round pool business While you would think that a pool service business would be very seasonal in a country like Canada, Wilson says that the business is in fact year-round, thanks to the commercial clients where pools are mostly indoors. Residential pool opening and closing seasons are especially busy, and repairs, maintenance, and renovations tend to be the focus through the summer. “There’s some breaks in the season, but it tends to be quite busy,” says Wilson. Now that the team has completed a cycle including both opening and closing seasons, Wilson says that the biggest challenge of the first year in the franchise is that it’s hard to forecast how the business will roll out, and, as

58 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FIRST YEAR

“Image is huge in this business, and Puddle puts a lot of emphasis on being a clean-cut, organized company.” – Zach Wilson

a result, when to add resources and vehicles. He’s looking forward to year two because now they have a year’s track record on which to base their projections. He foresees growing the team, doubling their fleet of vehicles by next summer, and delivering more renovations, possibly dedicating a small team to focus on that exclusively. Already they were brought into several large, custom projects as the water consultants by general contractors, and he sees that continuing while taking the lead on some renovations. The team expects to continue growing the commercial side of the business as well.

Wilson encourages prospective franchisees to make sure their values are aligned with the franchisor, and that the support is in place. That’s what happened with Puddle Pools. “The vision and values aligned right away, it was clear,” he says.

Learn more at LookforaFranchise.ca

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Franchise Canada January | February 2024

COMING TO CANADA

From the Land Down Under to the Great White North

How Just Cuts is bridging the business gap between Australia and Canada BY JORDAN WHITEHOUSE

ome economists have been saying it for years: given the similarities between Canada and Australia, you’d think the two countries would have a much closer relationship. Both have smaller populations, and our GDPs per capita are relatively close. And both have a serious interest in open economies and free flows of trade and capital. Yet while that deep economic partnership never really materialized, there are signs our ties are at least getting snugger. Bilateral trade has been up over the past couple of years. So has bilateral investment. And in the franchise world, a couple of the Aussies’ biggest brands have recently planted their flags in Canada. The latest is hair salon giant Just Cuts. The familyfriendly, walk-in salon is a major mid-market now with

227 locations in four countries—Australia, New Zealand, the U.K., and Taiwan. The goal in Canada is to add five more to that total this year, 10 more next year, and then to keep growing from there. CEO Amber Manning says the inherent global transferability of the proven Just Cuts model means we could one day soon see 200 salons across the country. “We’re currently doing over 100,000 haircuts a week, and we don’t see why we couldn’t achieve that in Canada.” One reason for that confidence is those similarities between Canada and Australia include cultural similarities, says Manning. The two countries are definitely distinct, she says, but no doubt Canadians and Aussies live in dynamic multicultural societies and share a hunger for value.

60 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

COMING TO CANADA The hope is that those resemblances will make the concept particularly appealing to Canadian families. Just Cuts’ main market is the mom and dad with a couple of kids who all want cuts, but also want a quality salon experience without the higher-end prices and hassle of visiting a separate barber for boys. They typically want convenience too, says Manning, mentioning the Just Cuts app that customers can use to check in instead of booking appointments. Still, although the concept caters to more convenience and fewer frills than a full-service hair salon, add-ons like thermal styling, blow drying, and hair straightening are available. Plus, Just Cuts has a salon exclusive product range, JUSTICE Haircare, that includes ammonia-free and take-home hair colour. “We’re confident and very excited about coming to Canada,” says Manning. “We’re getting so many franchising queries from people across the country, but right now we’re focused on getting the model right, the branding right—and maintaining consistency to continue growing our brand equity globally.” The origin story Just Cuts’ origins go back to 1983 and Hurstville, Australia, a suburb of Sydney. Hairdresser Denis McFadden was moving his full-service salon into another location on the strip, but he still had six months left on his original lease. To keep things simple as he saw out that lease, he put a sign in the window that read “$6 haircuts” and staffed the salon with stylists who did just that. There was a lineup out the door almost from day one. McFadden was clearly on to something and decided to keep that salon and the straightforward concept. The first franchise location opened in 1990 in Engadine, another suburb of Sydney. The first franchisee was Leigh-Anne Brosens, a hairdressing apprentice of McFadden’s. She was actually pregnant when she opened the salon, but that wasn’t an issue. McFadden’s flexible systems meant that Brosens didn’t have to be physically present at the business at all times. Over the next decade, Just Cuts continued to expand and gain notoriety across Australia. (Fun fact: it was the official hairdresser of the 2000 Olympics in Sydney.) In 1996, the first international location opened in New Zealand, and today there are 189 locations in Australia, 32 in New Zealand, five in the U.K., and one in Taiwan. Not much has changed with the Just Cuts concept over the years, but the way franchisees do business has. Exhibit A: about six years ago, the company introduced a fully online system that franchisees can use to track and monitor their business. “Now they have an app in their hand where they can be on the beach or at a café and see exactly how many clients are in the queue, which stylists are checked in,

Amber Manning, CEO

that type of thing,” says Manning. “It also has a benchmarking tool so that all salons can see where they sit in the group at any time in the system.” Manning says that the idea to expand to Canada has been in the works for a few years, but that it intensified last year. A few people from Just Cuts’ research and development team have visited Canada several times recently to meet with potential franchisees. They’ve also hired a leasing support expert and networked with other franchises to learn more about the Canadian market. There shouldn’t be too many changes to the Just Cuts concept to adapt to Canada, says Manning. There will be a few tweaks to things like marketing terminology, but she thinks that the bigger transitional challenge will be around supply chains. Just Cuts manufactures its own products, so finding the right warehouse spaces will be key. So will making sure that builders and manufacturers can help the company maintain the consistent look and feel of the brand. “We know in Canada that you like to use your local people, which is great,” says Manning. “But in Australia, we might have three or four shop fitters that travel all around Australia to do our work. So setting up these structures with local people, whether it’s in Toronto or Vancouver or wherever, will take some work, but we’re committed to doing it right to set our Canadian salon owners up for success.”

Franchise Canada January | February 2024

COMING TO CANADA

Finding the right franchisee Prospective franchisees are already reaching out to the Australian head office via social media. Manning says the company has already received “a lot of” queries from potential owners across Canada. None of those franchisees need a particular pedigree, she says. Current owners have backgrounds in fields as diverse as law enforcement, bank management, and accounting. Having experience in hairdressing or business management helps, but Manning says it’s perhaps more important that they can work with a team of hairdressers and inspire them. Once Just Cuts finds the right franchisee, training begins with an introductory e-learning program, followed by three days of more intense in-person training on the brand and the business. It’s also around this time when new franchisees meet and start forming buddy networks to support each other. Then it’s time for in-store training for both hairdressers and owners. It’s done concurrently so everyone understands what everyone else does, says Manning. When the store opens, franchisees receive about six weeks of in-depth support and coaching from the marketing team to figure out where the opportunities are. Ongoing, there’s operations and marketing support to help with everything from social media strategies to hitting performance goals.

Manning says Just Cuts is very much a turnkey system, and that helps if franchisees want to be multi-unit owners. As of writing, about 55 per cent of Just Cuts’ 125 franchisees owned more than one salon. Time will tell if those numbers hold true in Canada, but for now Manning and her team are focused on getting the Canadian model right—and capitalizing on those similarities between the Land Down Under and the Great White North. “Aussies have grown up with and loved Just Cuts for 30 years, and we’re putting in the work to open in Canada now because our market research and feedback from Canadians tell us you will love it too,” says Manning. “We’re ready and we’re so excited to bring Just Cuts to Canada, so Canadians can have access to award-winning, quality cuts for the whole family, and franchisees can have the opportunity to be part of a proven model that’s delivered small business success for three decades— and counting.”

Learn more at LookforaFranchise.ca

62 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

SHOW ME THE MONEY

4 FRANCHISES FOR UNDER $50K Franchising is about diversity, and opportunities can be found in nearly every industry and business sector. It’s a great way for Canadians from all walks of life to go into business for themselves but with the support of a franchise system behind them. One of the most important considerations for a prospective franchisee is investment level, including figuring out a budget that fits with your financial situation and goals. Here, Franchise Canada showcases franchise systems in which you can invest under $50K. Anago Cleaning Systems

Ledgers Canada

For over 30 years, Anago Cleaning Systems franchisees have been providing commercial cleaning services to various businesses including office buildings, medical facilities, car dealerships, hotels, fitness centres, and more. They offer master and unit franchises across Canada. Within their multi-tiered system, master franchise owners manage the sales and marketing side, while unit franchise owners are cleaning professionals looking to create financial freedom for themselves and their families. As a unit franchise owner, one’s primary focus is on the cleaning business, delivering high-quality services to meet customers’ specific needs while utilizing the right chemicals and equipment–with the knowledge, proven systems, and outstanding support from the Anago Franchise network.

Ledgers franchise owners provide a comprehensive suite of services to small businesses, their owners, and the general public. With services ranging from accounting and bookkeeping to personal and corporate income tax preparation, Ledgers is the one-stop source for all the financial aspects of running a small business.

Learn more at LookforaFranchise.ca

Bark Busters Bark Busters gives you the chance to make a difference in the world, love what you do, and make a profit. In the post-pandemic environment, there are record numbers of people struggling with their dog’s behaviour. Joining the Bark Busters team will give you the opportunity to help these people and dogs, make a meaningful difference in people’s lives, and run a profitable and enjoyable business. Bark Busters has been improving the lives of dogs and the families who love them for over 30 years. Its highly effective training techniques, combined with intensive and ongoing training of our people, gives you a significant competitive advantage. The brand’s franchise partners are in the top tier of effectiveness and profitability. In addition, the international scale, marketing, systems, and peer support network provide the help you need to stay at the front of the pack.

Learn more at LookforaFranchise.ca

WP Creations LifeCasting & Jewelry Studios WP Creations (formerly Wee Piggies & Paws) started in 2001 and became an award-winning work-at-home franchise concept. Now the brand has almost 30 Canadian locations. WP Creations specializes in crafting personalized and detailed life casts and custom jewelry, capturing precious moments and memories for clients. Business owners receive training, coaching, access to private support groups, and access to the brand’s online WP Creations University program. The sense of pride in owning your own business, while at the same time having the flexibility to work around your family’s schedule, enables women to achieve the work-life balance they desire.

Learn more at LookforaFranchise.ca

Franchise Canada January | February 2024

GIVING BACK

Painting the Town Pink

Franchised painting business CertaPro Painters shares how its system-wide campaign brings funding and awareness to breast cancer research— and a host of other causes near and dear to franchisees’ hearts BY JOELLE KIDD

hen a CertaPro Painters franchisee who had tragically lost his wife to breast cancer approached the brand about a possible one-year charitable campaign, the idea was met with enthusiasm from the franchisor, says Erica Eaby, senior marketing program manager for CertaPro Painters. Now in its fifth year, the Paint it Pink campaign has grown dramatically. “We’ve already seen 40 per cent growth in donations in just those four years, which is incredible and really speaks to the CertaPro culture and community, and what we can do when we band together and work towards one goal,” she says. The annual campaign runs between October 1 and November 30 each year, a two-month span that includes Breast Cancer Awareness Month in October. Over these 60 days, the brand runs several drives: a step challenge that can be done on a local level, in the corporate office, and with organizational partners; a donation wherein every participating franchisee donates a dollar amount for every job completed during those months; and local donation drives within franchisees’ communities. “Between those three efforts, we’re driving to our overall goal,” says Eaby. “That way, anyone can donate and participate.” Paint it Pink is the only charitable campaign that’s running system-wide rather than on a local level, Eaby notes, and with CertaPro Painters’ close to 500 locations across Canada and the U.S., the campaign is able to make a big push and a big impact. In 2023, the campaign goal was to raise a total of $155,000, and at time of print, it had

already raised over $126,700. These donations fund work through the Breast Cancer Research Foundation (BCRF) in the U.S. and the Breast Cancer Society of Canada (BCSC) in Canada. Despite the success of the campaign’s donation drive, Eaby says that Paint it Pink comes out of a desire to spread awareness. “As important as the donations are— and we absolutely love to make them, whether to help research or support families during those times when they’re struggling through the breast cancer journey and battle—it really is about the awareness. It’s been so cool to see a lot of our franchisees and the tactics they’ve been using on a local level to increase that awareness.” Over the years, she’s seen the impact of these efforts on the CertaPro Painters community, as well as local communities of franchise owners, she says. “We’ve heard so many stories, whether it’s from a franchise owner or maybe someone on their staff, or even someone on our corporate team, that have been impacted by breast cancer. So that awareness piece is really hitting home for all of us, because it does hit home. Our neighbours, our community, our friends, our family, are being impacted every single year.” Local love, big impact The power of a franchised business like CertaPro Painters is that, while contributing to larger brand initiative with the ability to make a huge difference, individual owners can make important connections within their local

64 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

GIVING BACK communities. Over the years, many business owners have partnered with their local CertaPro Painters franchise to literally paint a building pink for the duration of the campaign. “It started with a gazebo and has now grown into these local businesses joining,” says Eaby. “This year I know we’ve done a coffee shop and a car shop. “It’s so cool to think that across the country, in both Canada and the U.S., there are pink buildings out there representing the campaign and driving that awareness.” During those months, participating franchisees also swap their staff’s iconic gold uniforms for pink shirts. “I think that’s the coolest part of it; it’s not just joining a cause and [...] set it and forget it. They’re actually getting very involved from the franchise owner down to their staff,” says Eaby. Passionate franchisees care about their communities For franchisee Mark Tunks, who owns the CertaPro Painters location in Oakville/Burlington, Ontario, the campaign is a yearly highlight. “We have thoroughly enjoyed participating in the Paint it Pink campaign since its inception,” says Tunks. “The team feels that they are part of the greater good and of course look forward to hearing how much good could come out of the funds that we donate collectively in Canada and the U.S.” “It’s beneficial to be part of a national campaign that everyone can rally around,” he adds. Tunks has always prioritized giving back through his business, both as part of this national campaign and through grassroots local efforts. “We have been the ‘Painter of Choice’ for a local non-profit housing group, we teamed up with SherwinWilliams to paint a local mission, and of course we have participated in Paint it Pink [since] day one,” he says. The campaign was especially close to heart for the franchise. “Our recently-retired office manager is a breast cancer survivor and we thank her for enthusiastically jumping in to spearhead the Canadian arm of the Paint it Pink campaign when it was in its infancy,” he says. “Thank you, Debbie Morris!” According to Lindsey Champagne, director, communications & PR for CertaPro Painters, this team spirit and desire to get involved is essential to the company’s DNA. “I think that [charitable] initiatives and CSR [corporate social responsibility] initiatives come from our whole mission of ‘First, Serve Others,’” she says. CertaPro Painters is part of the family of FirstService Brands, one of North America’s largest property service providers, which prides itself on its strong focus on customer service. A franchise culture of giving back “I think these initiatives really help people to rally behind something,” says Champagne. “It fosters and creates a strong culture, and I think that people are really attracted

to that. I’m a case study example of that myself—it was really attractive to me when I wanted to join and I saw that there were really strong missions and values within this company. And now that I’m inside, I see that they really are something that we live and breathe.” CertaPro Painters has always had many charitable initiatives for its employees and owners to participate in, says Champagne. “We actually have a calendar of events where we all pick things that are meaningful to us, or they’re initiated from the corporate level and we can opt in. It’s everything from giving back to our local community doing clean-ups, doing food drives, and more.” As someone who joined the organization fairly recently, Champagne says it’s been exciting to see a brand already engaged with charitable initiatives. “Every employee is encouraged to have a charitable cause that’s meaningful to them [...] and CertaPro Painters will actually match donations through their give-back program.” For franchisees, service to one’s community is a way to spread the love while staying connected on a local level and forging meaningful business relationships. “It’s a holistic approach to who we are and what we do,” says Champagne. Looking ahead to the future, Champagne and Eaby say CertaPro Painters’ aim is to keep growing its charitable initiatives and looking for more ways to give back. When it comes to the Paint it Pink initiative, “every year we’d like to outdo the year before” in donations and awareness raised, says Champagne. “Paint it Pink started very locally and has grown into this intense and amazing thing that we’re all working together on,” says Eaby.

Learn more at LookforaFranchise.ca

Franchise Canada January | February 2024

Q A

ASK A FRANCHISE EXPERT What factors should I consider when exploring franchise ownership? FOR MOST PEOPLE, EXPLORING FRANCHISE OPPORTUNITIES is the first real step toward taking control of their destiny and beginning a journey toward building a wealth-generating business. Franchising offers owners an opportunity to call their own shots, build a local team, create lasting community relationships, and discover newfound flexibility and freedom. Before an aspiring franchisee can embark on making their dream a reality, they need to determine what types of franchised business models will put them in the best position possible to achieve their goals. While the path to awarding a franchise will be different for each franchisor, there are several key questions that any prospective franchisee should ask themselves long before getting too deep into researching franchise company. 1. Can I afford this investment? Investment ranges for franchises can vary based on location, equipment needs, and upfront materials and/or inventory costs. The type and number of employees the business requires at the start is also a factor in determining cost. Most franchisors share the initial investment in their marketing materials or on their franchise website. Many will also share the brand’s net worth and liquidity requirements, along with other information needed to make a financially sound decision. A good franchisor will ask you about your financial situation early in your relationship, to ensure you meet their qualifications. This isn’t the time to keep your cards close to the vest. Be open: let them know that you did your research and have the funds needed.

model and skip past the costly growing pains that many independently owned businesses face. As the saying goes, revenue is vanity, but profitability is sanity. Every business model is unique, and you will want a good handle on the initial ramp-up timeline, needed working capital to get to a break-even point, the short-term and long-term revenue potential, the necessary expenses to operate the business, and the expectations for owners to reinvest earnings to continue growing their business. Take the time to understand the mechanics of the model; you will be glad you did. 4. What are the distinct advantages and differentiators in this business? All successful franchisors provide proven systems, processes, structured coaching, tools, and intellectual property that put their franchisees in a position to succeed. As an aspiring franchisee, you need to understand how a franchisor uniquely positions you in the market. In most cases, the service isn’t unique, but how the customer experience is managed and delivered absolutely should be. Some examples include how and where the franchisor advertises, how new customer leads are generated, how the franchisor assists franchisees in managing the customer journey to convert new sales, and how the franchisor helps its franchisees maximize repeat business to drive more revenue within the current customer base. The franchisor’s unique value proposition isn’t always apparent by simply looking at a website or reading a brochure. The answers to this type of question typically come from engaging at a deeper level with a professional representative of the company you are exploring.

2. Would I be proud to represent this brand? Don’t shop for a franchise like a consumer would shop for a product or service! Some of the fastest growing and most profitable franchises are far from sexy, and are likely businesses you may have never thought of owning. Keep an open mind, and research a franchise like an investor. While the business itself shouldn’t be the only determining factor, an aspiring franchise owner should feel a connection with the company vibe and culture, and be comfortable with how the brand presents itself to potential customers. If there is no alignment between the brand values and yourself, that feeling is unlikely to change regardless of how much homework is done. 3. Can I truly scale this into a profitable business? Experts agree that franchising allows people to grow a business more quickly than most would be able to on their own. You can leverage the franchisor’s successful

66 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

(continued on page 71) Eric Martin Senior Vice President of Franchise Development Happinest ericmartin@happinest.com

Sharon Cupach Vice President of Franchise Development Happinest sharoncupach@happinest.com

Q A

ASK A LEGAL EXPERT

What questions should I ask about my franchise training program? A BIG CONSIDERATION WHEN DECIDING WHETHER TO PURCHASE A FRANCHISE is what kind of support you can expect from the franchisor. When it comes to franchisor-provided training, including initial and ongoing training, it’s important to ask questions to help you decide if a particular franchise is a good fit for you and your business goals. When reviewing any franchise opportunity, you should seek the advice of a lawyer experienced in franchise matters. One of the most valuable benefits franchise agreements typically offer is the initial training program that new franchisees must complete. The initial training program offered by a franchisor will normally be based on best practices developed over years and through consultation with many different locations, and it may be this expertise that prompted you to reach out to the franchisor in the first place. While the overall experience and expertise of the franchisor is important, you may also wish to ask the following questions. Some of these questions could be answered in the franchise agreement or the disclosure document you received from the franchisor, so those documents should be reviewed first with a lawyer before posing such questions to the franchisor directly. 1. How much does initial training cost, including direct fees and any travel, lodging, and salary costs of sending the necessary people to participate in the training? 2. How long is initial training? This may affect your business plan, as you cannot normally open your franchised business before the initial training program has been completed. 3. How often do franchisees need to repeat some, or all, of the initial training before they are considered ready to open? You may need to account for a buffer period in the event one or more people need to redo a module. 4. Can the franchisor terminate your franchise agreement if you fail parts of training? Do you get a chance to try again? Do you receive any refunds if the franchisor terminates your franchise agreement because of a failure to complete training? 5. Does initial training include on-site training, either at your franchised business or at another location within the brand? If not, you may need to request additional, on-site training to familiarize yourself with the practical application of what was taught. 6. Who needs to be trained? Sometimes, all the owners of the franchised business will need to be trained as managers, other times you will just need to select one designated manager. Keep in mind that bringing

in a new manager will require that they first complete training. On a related note, you should ask what level of training the employees of your franchise must complete before you can open, including how long it takes to train a typical employee and what that process involves. Normally, this type of training will be a separate program from the initial training that managers must complete, will likely be administered by your managers rather than the franchisor, and your managers may need to fully complete their initial training before they can start training other employees. The timing of all of this may affect your opening date. Once your franchise is open, it’s likely that you still have ongoing training requirements, although the exact nature of ongoing training is not usually spelled out in as much detail in the franchise agreement or the disclosure document as initial training. However, the following questions may help you better understand your obligations to keep up with training. 1. Is there a need to travel to receive ongoing training? Is there a limit on how much or how often travel may be required? 2. Is there an annual conference you must attend? What’s the cost of attending, including direct fees and any travel, lodging, and salary costs? 3. Is there a distinction between mandatory and optional training? What are the consequences of failing to keep up with mandatory training? 4. What annual time commitment is anticipated for mandatory training? Is there a cap on this? The time and money required to open and maintain a franchised business will be significantly influenced by the training programs used by the franchisor, and understanding these programs is therefore critical for deciding if a particular franchise is a good fit for you.

Nikolas Sopow Associate Dale & Lessmann LLP nsopow@dalelessmann.com

Franchise Canada January | February 2024

FRANCHISE TUTORIAL

TUTORIAL 7: THE FUNDAMENTALS OF FRANCHISING

INTRO TO INITIAL TRAINING ONCE YOU’VE BEEN GRANTED A FRANCHISE, one of the first things that’ll happen is initial training. This training provides you with the knowledge and skills to duplicate the franchisor’s proven business model and to provide a consistent customer experience. Training is the foundation of a strong franchise system. Successful franchising is all about duplication and consistency. A brand is strongest when the customer has the same experience each time they visit a franchised location, no matter what time of day or which location. The only way that brand consistency can be accomplished is through training. Initial training is so important that it’s typically mandatory. Some franchisors will even go so far as to stipulate in the franchise agreement that if initial training isn’t successfully completed, the franchise licence can be terminated, or that the franchisee must repeat the training until all of the necessary skills are learned. During training, new franchisees must set aside any preconceived ideas of how the business should be run, and be open-minded to learning new methods that are being taught by the franchisor. This can sometimes be difficult for franchisees that have been in business for themselves before, especially if it’s in the same industry. The franchisor will be assessing your ability to learn and to adapt to their method of doing business. The goal of initial training is to ensure that a franchisee has all the knowledge they need to be successful and to duplicate the brand. Someone wanting to get involved in a franchise is usually looking to be shown how to do this, as they don’t want to have to figure it out themselves. In addition to training the critical elements that make the brand, strong franchisors will also provide training in all aspects of running a business. Key areas that are typically covered in an initial training program include the following: • Initial site selection and store build-out • Operating standards and procedures • Technical operations for providing the service or product • Merchandising • Recruitment, retention, and management of employees • Training of employees • Marketing, advertising, and public relations • Financial management and controls

• Administration • Point of sale systems • Approved suppliers The duration, costs, and where the training is conducted will vary from franchise to franchise, depending upon the maturity of the franchisor, the complexity of the business model, and the industry. Some franchisors provide training in a group setting at the head office, while others provide training one on one at the new location. Some franchisors provide initial training for several weeks, while others have training that lasts several months. Some franchisors include the training costs in the initial franchise fee, while others charge a training fee over and above the initial franchise fee. Costs for flights, accommodation, and meals while attending the training are typically paid by the franchisee. Who attends the initial training will vary from franchise to franchise. In some cases it’s strictly the franchisee, in other cases it includes the franchisee and key management, and with some franchises, the training may include all new staff. As a result of the large variations, the only way that you’ll understand the details of the initial training is to carefully review the disclosure document provided by the franchisor and ask a lot of questions. Often the disclosure document will provide a training outline. Ask the franchisor critical questions so that you have a good understanding of what the initial training entails: who, where, when, and what. Talk to existing franchisees and get their input and impressions of the initial training. Some franchisors may let you review the operations manual or sit in on a part of a training program so that you can get a sense of the quality of the initial training. Don’t be afraid to ask the franchisor your questions to learn as much as you can about the training. There’s a lot to learn when you’re starting a new business, especially when it’s in an industry in which you’ve had no previous experience. Good training is more than just how to make the product. It’s all about how to duplicate a complete, proven business model. A good initial training program provided by the franchisor will instill you with confidence and start you off on the right track to building a successful business.

68 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE TUTORIAL

TUTORIAL 8: THE FUNDAMENTALS OF FRANCHISING

INTRO TO ONGOING TRAINING GREAT FRANCHISORS DON’T STOP at providing initial training. They provide ongoing training and support designed to continue to develop the skills of the franchisee and their staff for the duration of the franchise agreement. As with initial training, the details and extent of ongoing training varies widely between franchise companies and requires you to ask a lot of questions. Not all franchisors provide ongoing training, so don’t assume that they do. Franchise licences will often have a term of five to 10 years, or longer. During this time, the business model should evolve. New products, technology, and innovations require that franchisees have ongoing training to keep current with the evolving brand and continue to be competitive in changing markets. When the quick service restaurant (QSR) franchises started in the ’50s, the menu often consisted of only burgers, fries, and milkshakes. Today, QSR menus have dramatically changed to remain competitive in the market, to respond to the growing trend towards healthier food choices, and to provide menu items for meals such as breakfast. All of this change requires training so that the entire franchise system evolves together, and the customer continues to have the same experience at each franchise location. Strong franchise systems will define clearly that ongoing training is mandatory in their franchise agreements. Depending upon the franchise and the industry, ongoing training is often provided for employees of the franchised location. This can be useful in assisting you when dealing with a business that’s technical and needs welltrained staff. There’s also advanced training for franchisees who wish to take the business to new levels. The ongoing training updates franchisees and their staff on new products, services, or system-wide enhancements. Franchisors will use training to introduce new technology, marketing programs, and other initiatives. There may be a charge for sending employees to ongoing training, or it may be covered as part of your ongoing royalties. Be sure to review the franchise agreement to determine who’s responsible for the costs. Typically, you’re responsible for paying the employee’s salaries, flights, accommodations, and meals during their training. Franchisors may have reduced these costs by the method of delivering the ongoing training to the franchisee. Some franchisors have set up regional training

centres to minimize travel. Others have support staff from head office go out into the field and provide training at the franchised location, and some have set up online training over the internet or via video so franchisees and their staff can get training at their own convenience. Training is also often delivered as part of national conferences or regular regional meetings. Franchisors that put a lot of emphasis on ongoing training will use all or a variety of these methods to deliver the training and get the new information out. Providers of ongoing training are not limited to the franchisor. The franchisee may look to other education sources over and above the training provided by the franchisor. Suppliers of products to the franchise system may provide training to update franchisees and ensure that the franchise staff is knowledgeable when representing these products to end-user consumers. There may also be tradeshows and conferences put on by industry associations to provide further education. The franchisor often communicates these external training opportunities to the franchisee. Successful franchisors put a heavy emphasis on ongoing training. The goal is to ensure that the franchise system is consistent as a whole and continues to be competitive as industries change and evolve. The quality and thoroughness of ongoing training often has a correlation to the quality of the franchise system, and ultimately, your success. Be sure to ask questions and ensure that effective ongoing training is provided when you’re researching franchise opportunities and choose to be part of a franchise system that has a long-term view of the business.

Watch the Franchise Tutorials video on Franchisee Training

Franchise Canada January | February 2024

Franchise

SMARTer

2024 IFA ANNUAL FEBRUARY 17–20

PHOENIX, AZ

Learn more: franchise.org/convention

FRANCHISE TUTORIAL

STUDY QUESTIONS TUTORIAL 7

TUTORIAL 8

1. Initial training provides a franchisee with: a) a n opportunity to operate a franchise for six months under the supervision of head office staff. b) the knowledge and skills to duplicate the franchisor’s proven business model and to provide a consistent customer experience. c) educational opportunities through industry associations.

1. Ongoing training updates franchisees and their staff on: a) n ew products, services or system-wide enhancements. b) head office staff changes. c) new products and services of competing franchise systems.

4. Costs for flights, accommodation, and meals are always covered by the franchise system. True or False? a) True b) False

3. You may only receive ongoing training from your franchisor. True or False? a) True b) False 4. Ongoing training is also provided via Internet and video. True or False? a) True b) False

1) a 2) c 3) b 4) a

3. As franchising is a business model, initial training is the same for every franchise system. True or False? a) True b) False

Answer Key:

2. During initial training, new franchisees must: a) s et aside any preconceived ideas of how the business should be run. b) be open-minded to learning new methods that are being trained by the franchisor. c) both a) and b).

2. There’s often a correlation between the quality and thoroughness of ongoing training and: a) t he franchisor’s level of post-secondary education. b) the franchise fee. c) the quality of the franchise system and ultimately, your success.

Answer Key:

1) b 2) c 3) b 4) b

ASK A FRANCHISE EXPERT (continued from page 66) 5. Is this something I can exit from someday? If you were to remove a seasoned owner and replace that individual with a competent and driven new owner, would the business continue to thrive? If the answer is no, it doesn’t mean it’s not a good business to consider, it just means it might be harder to transfer ownership someday. The end game for those who do not have family members interested in taking over the business is to have a liquidation event and exit through a franchise

resale. One of the main reasons people start a franchise, outside of creating a meaningful income stream, is to make a solid return on their initial investment through a transfer of ownership. When researching a franchise opportunity, it’s wise to begin with the end in mind and determine if a healthy, profitable, and properly managed franchise is indeed sellable when you want to pursue a new opportunity or retire.

Franchise Canada January | February 2024

MARKETPLACE

JOIN A BRAND ON THE RISE • A trusted brand – With nearly 700 locations worldwide and 35+ years of experience franchising, we are the fastest-growing bakery in Canada • A robust model – COBS Bread is built on providing exceptional products, friendly service and a welcoming environment for all customers • Community-focused – All bakeries donate to hundreds of local schools, groups and charities across Canada • Authenticity – We operate with honesty and transparency, building trust through genuine practices • Get ready to roll – Utilize our national marketing fund and benefit from a comprehensive training program and ongoing support • No initial franchising fee for new bakeries • Flexible financing options Contact the COBS Bread Franchising Team E franchise@cobsbread.com P 1-844-369-COBS (2627) W www.cobsbread.com/franchising

JOIN US IN THE $6 BILLION TRANSPORTATION INDUSTRY Seeking motivated entrepreneurially minded partners that see the unlimited potential of the transportation industry Answer your community’s call for better and safer pre-booked transportation solutions (7-24 people) Lead your team to consistently outshine the competition and wow your customers every time Smile more at work as your own Boss. It’s easy when you love what you do!

What makes us different? • Low initial investment • Faster profitability • Unlimited earning potential

driverseatfranchise.com franchise@driverseatinc.com

After over forty years of providing easy-to-prepare, top quality foods, M&M Food Market has become a trusted and iconic Canadian brand that customers have come to rely on for a uniquely convenient and welcoming shopping environment. Canadians were looking for help to serve real food that fit with the reality of their busy lives when eating at home has never been more prevalent. We offer innovative products for those looking for new and different meal solutions including more than 35 gluten free products spanning every category, our customers can trust they’ll find something that suits their dietary needs. The initiatives that we implemented during our recent brand transformation such as our new store design, food innovation, digital marketing and eCommerce (including in-store, curb-side pick up and delivery) along with our industry-leading loyalty program have put M&M Food Market in a position to be able to continue to serve our loyal customer base when they need us the most. For YOU as our newest Partner we offer a comprehensive training program, ongoing operational support along with Head Office support to help ease the transition into business ownership. All this and we are GROWING! We have new store opportunities available across Canada. Reach out today to find out about opportunities near you!

The Pizza Nova story began in 1963 when a young Italian family opened the very first Pizza Nova restaurant. Still family-owned, we have helped hundreds of families open and operate our 150+ locations across Ontario and specialize in hand-tossed, Artisan-style pizzas that are complemented by an extensive menu of proven favourites. Our 60+ years of success continues as a direct result of our uncompromising commitment to providing quality ingredients and product innovation. In 2015 we became the first Canadian pizza company to introduce pepperoni sourced from beef and pork raised without the use of antibiotics or added hormones. We have since expanded our ‘Raised Without Antibiotics’ profile to include bacon, chicken wings, chicken pollini, grilled chicken, and smoked ham. In 2021, we introduced the first pea protein-based pepperoni as a plant-based alternative to our diverse menu, as well as plant-based chick’n bites, thus further expanding our reach to include vegans, vegetarians and flexitarians alike. We provide comprehensive training, easy ordering from our HAACP approved commissary, location identification & design, operations support and innovative marketing initiatives that bring customers through your door. Pizza Nova is the Official Pizza of the Toronto Blue Jays™, Toronto International Film Festival, and the CNE. For more information on Franchise Opportunities, please contact John Consales, Senior Franchise Development Manager 416-439-0051 ext. 1016 • john.consales@pizzanova.com

For more information, visit our website at www.mmfoodmarket.com/en/franchising or call us at 1-800-461-0171. TORONTO BLUE JAYS™ bird head design and all related marks and designs are trademarks and / or copyright of Rogers Blue Jays Baseball partnership, used under licence.

72 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

Reach Learning Centres are academic remediation centres and Orton-Gillingham training centres that were formed to assist individuals who are struggling to learn to read or write and provide high-level professional development to teachers. Specializing in the Orton-Gillingham approach to remediating language-based learning difficulties, our team has been specifically trained to teach reading, writing and basic language skills to students who have difficulties acquiring these skills. As specialists in dyslexia and other learning difficulties, we provide unparalleled support to students and families navigating LDs and other struggles with literacy. Additionally, we are the leading provider of certified OrtonGillingham training and professional development to teachers across Canada. We support our franchisees to provide highlevel OG tutoring and intervention services to students in their community through each learning centre and certified OG training to teachers in their region. Franchise Inquiries: reachpartners@reachlearningcentre.com 1.833.REACHOG

STOR-X Organizing Systems designs and installs custom solutions to maximize space in closets, home offices, garages, pantries, kitchens and more. With more than 30 years in business, STOR-X offers franchisees a proven process, exclusive territory, ongoing and professional training, marketing support, 3D design software and low operating costs. The strength of a STOR-X franchisee are sales and customer service. Each franchisee is equipped with 3D software to custom design any storage solution required. Franchise units in Canada: 18 Corporate units in Canada: 1 In business since: 1989 Franchising since: 2012 Franchise fee: $60K Start-up capital required: $75K-$125K Investment required: $75K Training: 2 weeks, ongoing Available territories: BC, AB, SK, MB, ON, YT CFA member since: 2011 Contact: Tessa Bohn, Director of Franchising tessa.bohn@stor-x.com www.stor-x.com

ADVERTISERS’ INDEX

Join The UPS Store franchise network and count on the support from our experienced Home Office and in-field teams to get you to your grand opening and beyond. Many offer printing or shipping services, but our dedication to innovation and convenience are what keep The UPS Store at the top of our industry. With over 380 franchise locations across Canada (and continuing to grow), we have a proven track record of success! As a franchisee you will enjoy an established system to get your business started off on the right track; in-depth training programs and ongoing support to make sure you continue to succeed; and an internationally recognized and award-winning brand to help you build instant credibility in your community. The UPS Store is there at every stage of your franchising journey. Proud to have been designated as an Essential Business at a time Canadians needed us most. Visit us at theupsstore.ca. We Print, Ship & More! Locations, North America: Over 5000 Locations in Canada: Over 380 Minimum cash investment: $100,000 Total cash investment: $199,250 to $218,500 plus working capital. For more information on The UPS Store opportunity, call 1‐888-875-0007 or visit www.theupsstore.ca.

COBS Bread..................................................................................................................... 11 cobsbread.com/franchising Driverseat............................................................................ Inside Front Cover driverseatfranchise.com International Franchise Association. . ................................................ 70 www.franchise.org M&M Food Market.. ..................................................................................................... 3 mmfoodmarketfranchise.com Pizza Nova......................................................................................................................... 13 franchising@pizzanova.com Reach Learning Centre.. .....................................................................................12 reachpartners@reachlearningcentre.com STOR-X Organizing Systems........................................................................... 7 stor-x.com/become-a-franchisee The HandyForce.. ...................................................................................................... 44 https://thehandyforce.com/franchises/ The UPS Store............................................................... Outside Back Cover www.theupsstore.ca

Franchise Canada January | February 2024

FRANCHISE ROUNDUP

Insights, ideas, and opportunities to keep on your radar FRANCHISE AV CLUB Join a community of ambitious entrepreneurs and subscribe to the Canadian Franchise Association’s YouTube channel. Here you’ll find exclusive insights and expert advice, and go behind the scenes with the franchisees and franchisors of some of your favourite brands. Our latest video goes behind the scenes at one of Canada’s most beloved franchises: Mary Brown’s Chicken! Subscribe today and learn how the brand makes product development easy for franchisees.

FRANCHISING BY THE NUMBERS

https://www.youtube.com/@CanadianFranchiseAssociation

The cost of A&W’s new exchangeable cup. Just buy a drink on your next visit, and then keep the cup. On the next visit you can trade it in for a sanitized cup full of your beverage of choice.

10 The number of CosMc’s pilot restaurants expected to open by the end of 2024. McDonald’s’ new café format focuses on coffee and other beverages.

61 The number of years Pizza

Nova has been in business. It got its start in the Toronto suburb of Scarborough in 1963.

70% The number of survey

respondents who say they’re more likely to purchase a digital gift card over a physical gift card, up 6% from 2022.

3,859

The number of prospective franchisees who attended fall Franchise Canada Shows in Toronto and Vancouver in 2023.

$110 billion

The value of the Canadian foodservice industry in 2023. Last year, the industry served 22 million hungry people a day! (Sources: A&W; McDonald’s; Pizza Nova; Restaurants Canada; QSR Magazine)

THE CFA RECOMMENDS The Peak Daily. This podcast keeps it short and sweet, delivering Canadian business highlights, finance news, and a dash of humour in snappy 10-minute (or less!) episodes. www.readthepeak.com/shows/the-peak-daily

IN THE NEXT ISSUE

UPCOMING EVENTS

The March/April 2024 issue of Franchise Canada magazine is the Diversity in Franchising issue. Don’t miss our spotlight on women, newcomers, diversity, and families in franchising, plus senior services across Canada and education franchises. All these great stories along with our regular franchise success stories and opportunities.

January 17, 2024 11 a.m. - 4 p.m. EST Franchise Your Business, Virtual

74 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

February 3-4, 2024 11 a.m. - 4 p.m. EST Franchise Canada Show Toronto, at The International Centre

Everything you need to create your franchise future! Buying a franchise can be an overwhelming process. The good news is you don’t have to do it alone. Franchise Canada is here to guide you through the franchise process, with everything you need in one spot. FranchiseCanada.Online

Franchising 101: Easy-to-read resource articles and tutorials can help kick-start your franchise success! LookforaFranchise.ca: Explore the wide range of available franchise opportunities in our online directory Ask the Expert: Hear firsthand from franchise professionals as they answer common questions from prospective franchisees

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